Investor buys Oldham library PFI stake

HICL Infrastructure Company has increased its stake in the Oldham library private finance initiative (PFI) project.

The £30m centre was built 10 years ago as part of a plan to create a cultural quarter in the town.

The PFI contract originally had a capital value of £17m and was to run over 25 years.

HICL, which already held 50%, has bought the remaining 50% from Kier through a joint venture with Kajima Partnerships.

It has also acquired a 19% stake in the Sheffield Building Schools for the Future project, and has valued both transactions at £5.1m.

Under PFI, private-sector firms cover the cost of the work and the public sector pays them back over an extended period – both for the construction and ongoing management. HICL is listed on the London Stock Exchange and headquartered in Guernsey.

HICL is active in the region with stakes in PFI schemes in Ashton-under-Lyne, east Manchester and Salford.