Equitix completes the final close of its fourth core infrastructure fund
Equitix has completed the fundraising of its fourth core infrastructure fund (Equitix Fund IV), closing today (Friday 21st July 2017) at the £750 million hard cap.
EF IV was launched in 2015 as a closed-ended, sterling-denominated fund and exceeded its target size of £500 million. It has secured equity commitments from UK and global investors including corporate and local authority pension funds, insurance companies, funds of funds, asset managers and investment consultants.
The fund is already 75% committed to assets in traditional core infrastructure sectors. These include the M25, Humber Gateway OFTO and HS 1 rail link – which Equitix last week agreed to acquire as part of a consortium alongside HICL and South Korea’s National Pension Service. Other sectors that the fund has invested in include social housing, student accommodation and waste & renewables.
Hugh Crossley, Chief Investment Officer, said: “Equitix remains committed to providing investors with opportunities to make stable long term returns in core infrastructure assets. The UK continues to be an attractive market and we have identified significant deal flow in the UK and beyond over the next 24 months.”
Equitix is planning to launch its fifth fund in Q4 2017.
Consortium including Equitix Funds named as preferred bidder to acquire HS1 rail link
A consortium advised by Equitix and InfraRed has been named as preferred bidder to acquire High Speed 1 (“HS 1”) from Borealis Infrastructure and Ontario Teachers’ Pension Plan. Equitix Funds and HICL Infrastructure Company Limited will each acquire an effective 35 per cent interest in HS1, with the balance being taken on by South Korea’s National Pension Service.
The HS1 concession runs to 2040 and has an enterprise value of over £3 billion. HS 1 includes the iconic London St Pancras train station and consists of a 109 km high speed rail line connecting London to a high speed commuter service throughout Kent and to European cities via the Channel Tunnel.
Hugh Crossley, Equitix’s Chief Investment Officer, said “Equitix is delighted to be part of HS 1, an essential part of UK core infrastructure. The Equitix Funds expect to hold the investment for the full duration of the concession, which aligns with Equitix’s investment strategy to manage long term contractual cash flows for our investors.”
40MW Cowdown Solar Project completes
Equitix Fund IV has added to its UK, ground-mounted, solar portfolio with the acquisition of the operating 40MW Cowdown project near Andover.
The project was developed by Golden Square Energy, a joint venture between AGR Group and Ingenious Media as part of a mixed portfolio of UK renewable developments totaling more than 35 assets. The project received planning consent in late December 2015 and was constructed by Solar Century as EPC contractor, and connected before 31st March 2016 in order to achieve 1.3 ROCs.
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