JLIF acquires 5 PPP stakes

John Laing Infrastructure Fund (JLIF) has reached a deal with John Laing Group for the acquisition of interest in five availability-based UK PPPs.

JLIF has signed an agreement to purchase a 50% interest in the Aylesbury Vale Parkway railway station project, 100% in the Coleshill Parkway railway station project, 5% in the City-Greenwich-Lewisham Docklands Light Railway (DLR), 50% in the Lambeth Social Housing project and an additional 9% interest in the Intercity Express Programme (IEP) Phase 1 project.

David MacLellan, chairman of JLIF, said: "We are pleased to have agreed the acquisition of this portfolio of five UK PPP projects, including an incremental interest in the landmark IEP Phase 1 project.”

The acquisition in the IEP project, expected to be completed in the coming weeks, will take the fund’s interest to 15% before it becomes operational towards the end of 2018. 

JLIF has also signed an agreement with the John Laing Pension Trust to acquire a 47% interest in the DLR and 50% in the Aylesbury Vale Parkway railway station project.

A revolving credit facility is to finance the £141.2m acquisition for the projects, all of which are operational apart from the IEP and with an average remaining concession term of 19.3 years.

MacLellan added: “We remain confident in the UK market and in the contractual structures and legal frameworks that govern UK PPP contracts. We continue to manage actively our current portfolio and to pursue selectively opportunities for further investment where these align with our investment objectives and offer value for shareholders."

This is the latest addition of PPPs to the fund’s portfolio, following the acquisition of interest in Croydon and Lewisham streetlighting project.