John Laing fund aims to raise cash to buy into Midlands hospital project
BIRMINGHAM-based developer and infrastructure project operator John Laing is aiming to raise up to £240m on the stock market to acquire a portfolio of public-private partnership (PPP) projects.
Its John Laing Infrastructure Fund (JLIF) will use the money to buy a £103m portfolio of PPP projects made up of a 75% shareholding in North Staffordshire Hospital, a 40% shareholding in Barnsley BSF (Building Schools for the Future) and a 50% stake in a Canadian hospital.
The funds raised – via the sale of 218.29m shares – will also be used to refinance its existing bank facility – more specifically to pay off its debts.
John Laing said the move is in line with its stated strategy of buying low risk, high quality assets to deliver a stable and secure income stream.
Last month JLIF made its largest acquisition since launch, acquiring a portfolio of 11 operational and yielding assets, and also acquired an additional 5% stake in LUL Connect, funded through its existing bank facility.
Paul Lester, chairman of JLIF, said: “JLIF has grown consistently since its launch in November 2010, having successfully raised over £563m of primary equity, and increased the number of assets in the portfolio to 49.
“Today’s announcement, as part of our stated strategy, will enable us to repay our debt and acquire a new portfolio of three PPP projects.
“The new projects, two in the UK and one in Canada, meet our strict investment criteria, and complement our existing portfolio of high quality, low risk projects, allowing us to continue to deliver a stable and secure income to our investors.”
