£18m deal agreed by investor to dispose of stake in university accommodation

HICL Infrastructure, an investment company managed by InfraRed Capital Partners Ltd, has reached an agreement to dispose of its entire equity interests in the University of Sheffield Accommodation Project for £18m.

Completion is expected before the end of the year, subject to customary third-party consents.

HICL was 14 years into a 40-year agreement to manage the 4,000 plus bedroom student accommodation. The company had a 50% stake in the joint venture.

The project included new-build and refurbishment of the retained estate at the university’s Endcliffe and Ranmoor campuses.

Proceeds from the transaction will be used to reduce the balance on HICL’s £650m Revolving Credit Facility (RCF). Following completion of all announced disposals, drawings on the RCF are expected to be around £115m.

Edward Hunt, head of core income funds at InfraRed,said: “This latest transaction takes the total number of disposals for the year to nine, evidencing our active approach to asset recycling and the company’s ability to reduce debt in a value accretive manner, notwithstanding wider macroeconomic volatility.”