Airport investor disposes of high speed rail interests
The joint owner of Birmingham Airport has completed the disposal of its interest in the first phase of the UK’s high speed rail network.
The Ontario Teachers’ Pension Plan, in collaboration with Borealis Infrastructure , the infrastructure investment manager of OMERS Administration Corporation, announced in July they had agreed to sell Helix Holdings, the indirect holding company of High Speed 1 – known as HS1 – to a consortium comprising funds advised and managed by InfraRed Capital Partners and Equitix Investment Management.
Confirmation of the deal’s completion was made in a brief update to the markets.
As part of the deal, InfraRed advised third party funds including HICL Infrastructure Company (HICL) and the National Pension Service of the Republic of Korea (NPS).
The terms of the deal will see members of the consortium acquire interests in HS1 pro rata to their respective shareholdings, with HICL and the Equitix funds acquiring 35% each, and the NPS funds managed by InfraRed acquiring the balance of 30%.
HS1 operates the 68-mile high-speed rail line connecting London St Pancras with the Channel Tunnel, under a 30-year concession agreement.
HS1 is responsible for the operations, maintenance, and renewal of the track and associated infrastructure, as well as the four stations served by the route: St Pancras International; Stratford International; Ebbsfleet International; and Ashford International.
In 2016, HS1 handled over 75,000 train services and its principal customers, London and South Eastern Railway and Eurostar, carried more than 20 million passengers.
The consortium has said it is committed to ensuring HS1 continues to serve its stakeholders.
Each member of the consortium members has a proven track record of owning and managing UK infrastructure businesses so are undaunted by the specific needs of HS1.
Jo Taylor, Senior Managing Director of Ontario Teachers, said: “HS1 has delivered significant economic benefits to the UK and has enabled the regeneration of a number of areas along the route.
“We are confident that HS1 will continue to prosper under its new ownership, while Ontario Teachers’ remain committed to the UK as an attractive destination for future investment. The Government’s approach to the concession agreement partnership with the international investment community reflects an excellent model for infrastructure opportunities moving forward.”
