Listed fund buys stakes in Salford schools PFI

A LISTED infrastructure investor has acquired stakes in three secondary school PFI projects, including two in the North West.

HICL Infrastructure Company,  which is dvised by InfraRed Capital Partners, has bought 40% in the Salford & Wigan phase one and two Building Schools for the Future projects from Laing O’Rourke.

It has also bought 68% of a BSF project in Newham east London, and has paid £26.4m for all three investments.

HICL said the Salford and Wigan projects are  26-year and 27-year PFI concessions, respectively, to design, build, finance, maintain and operate five new secondary schools in Salford, on behalf of Salford City Council.  

Phase 1 was signed in 2009 and has been fully operational since 2011, while S&W Phase 2 was signed in 2011 and has been fully operational since 2013. Construction of both projects was undertaken by Laing O’Rourke Construction  

James O’Halloran, investment director, InfraRed Capital Partners Limited said: “We are delighted to have completed the acquisition of these fully operational schools projects from Laing O’Rourke and we look forward to developing our relationship with Laing O’Rourke with a view to sourcing additional investment opportunities for the group.  

“We are pleased with the schools’ build quality and the projects’ operational performance. We look forward to working with all stakeholders to ensure the projects continue to deliver the high level of services and facilities expected.”