Consortium acquires 30% stake in Intercity Express Programme West
A consortium comprising Dalmore Capital (“Dalmore”), Equitix Investment Management (“Equitix”), Japan Infrastructure Initiative (“JII”) and Rock Rail has signed agreements to acquire a 30% stake in Agility Trains West (ATW) from Hitachi Rail Europe Limited.
ATW was established in 2012 to finance, own and maintain 57 Hitachi class 800 trains that form the first phase of the Intercity Express Programme (IEP).
IEP is a £5.7bn Government-led rolling stock programme to build and maintain 122 new intercity trains for the East Coast and Great Western main lines. ATW was established in 2012 to finance, own and maintain 57 Hitachi class 800 trains that form the first phase of the Intercity Express Programme (IEP)
IEP is a £5.7bn Government-led rolling stock programme to build and maintain 122 new intercity trains for the East Coast and Great Western main lines.
availability-based inflation-linked contract with the DfT, with full ownership of the trains being retained at the end of this initial period.
£160 million has been invested in new and refurbished depots along the Great Western route, including new sites at Bristol and Swansea, and the modernisation of a depot in West London.Hitachi will continue to maintain the Great Western fleet for the duration of the 27.5 year contract, as part of its long-term investment commitment to building and maintaining trains in the UK.
Dalmore and Equitix previously acquired a 15% interest in IEP through the acquisition of John Laing Infrastructure Fund in October 2018.
Michael Ryan, Chief Executive Officer of Dalmore Capital said “We are delighted to make this further investment in IEP. Assets like IEP with long-term availability-based and inflation-linked returns are very attractive to our investors”
Geoff Jackson, Chief Executive Officer of Equitix, says “We are very pleased to have secured a further interest in the IEP West project which builds on the existing stake that Equitix acquired as part of the acquisition of JLIF. As a long term holder of high-quality core infrastructure assets this project represents an excellent fit for our investors. We look forward to working together with the other stakeholders in the project to ensure its long term success.”
Naoki Nishida, President & CEO of JII, said “We are very pleased to make this investment, which marks a significant milestone in JII’s company history. We look forward to working closely with our co-investors and other stakeholders including Hitachi, to ensure long-term success of IEP West project.”
MarkSwindell, CEO of Rock Rail, stated: “Rock Rail is delighted to build on its long-term relationship with Hitachi Rail Europe and is looking forward to working with its equity partners,Hitachi and other stakeholders to ensure that passengers of Great Western Railway enjoy the full benefit of the Intercity Express trains over the entire life of the fleet.
“Previous involvement with the Intercity Express Programme means Rock Rail and its partners have a deep understanding of the commercial and economic aspects of the project, including the diverse roles and responsibilities of its many stakeholders and is well placed to contribute to the future success of the IEP.”
DC Advisory acted as lead financial advisor and Ashurst acted as legal advisors to the consortium.
Cantor Fitzgerald Europe, Crédit Agricole Corporate and Investment Bank and Goldman Sachs International acted as financial advisors and Allen & Overy acted as legal advisors to Hitachi Rail Europe.
Notes to Editors
About Dalmore Capital
About Japan Infrastructure Initiative (JII)
JII is an infrastructure investment company established in January 2017 as a joint venture between Hitachi Capital Corporation, Mitsubishi UFJ Lease &Finance Co., Ltd. and MUFG Bank, Ltd. JII’s corporate mandate is to support Japanese manufacturers’ infrastructure business worldwide. In September 2017,as its first investment, JII invested £75 million in the UK rail infrastructure, HS1, through an Equitix managed fund dedicated to the project. In April 2018, as its second investment, JII made a $20 million investment in the Japan-Guam-Australia Submarine Cable project. JII aims to accumulate total invested assets up to $1 billion in the next few years through supporting Japanese manufacturers’ and engineering companies’ infrastructure business globally.
About Rock Rail
Rock Rail was established in 2014 by sister company Rock Infrastructure to focus on the development of large scale, strategically important rail infrastructure in partnership with public sector bodies and private sector investors. Rock Rail is an active investor developer and asset manager, responsible for leading the development of financing solutions for core rail infrastructure as well as providing asset management services for the same.
Rock Rail invests on behalf of its institutional investors in trains which represent a core passenger fleet for the rail franchise. Rock Rail works closely with the franchise train operators and train manufacturers to ensure a collaborative approach to design,manufacture and acceptance of the new, state of the art trains on time and to budget. In its role as asset manager, it provides a complete range of asset management services specialising in the rail sector, to manage the long-term residual value and releasing risks and protect the long-term interests of institutional financial investors.
Since 2016 Rock Rail has secured£2 billion of new rolling stock fleets which will come into service on the UK rail network over the next 2 years. As well as continuing to work on other core fleet opportunities in the UK, Rock Rail has extended its focus to other UK rail infrastructure sectors including digital signaling, depots and electrification and other rolling stock geographies including mainland European markets.
Equitix and ENGIE Secure New Accommodation Deal with Kingston University
A consortium, comprisingleading investors into UK student accommodation Equitix and ENGIE, has beenselected as the preferred bidder for Kingston University’s studentaccommodation with an overall funding requirement of c£100m.
Named ‘The ResidencesProject’, this development will see the refurbishment of the University’s KingstonHill and Seething Wells halls of residence. With innovative architecture andcareful planning, the project will comprise 1,332 new student bedrooms, therebyincreasing the overall number of bedrooms at these sites by 116.
The negotiations that will now take place will cover theconsortium taking responsibility for all aspects of the development, fromsecuring the project financing to the construction and the ongoing managementand maintenance of the facilities.Atcontract close, ENGIE will provide Facilities Management services to both sitesfor 50 years, supported by Fresh Student Living who will provide front of houseservices.
Keith Brennan, Registrar and University Secretary said: ‘Fromthe outset, the quality of the Kingston Student Living’s proposals shonethrough, underpinned by the clear enthusiasm of the team involved. TheUniversity were looking for a fresh approach for our student accommodation atthese sites and a team that we could work with as long term partners for the benefitof our students and we look forward to working closely with Equitix and Engie.’
Geoff Jackson, CEO of Equitixcomments: “We are delighted to add this prestigious project to our existingstudent accommodation portfolio and look forward to working closely withKingston University to help it deliver its vision for top-quality studenthousing”.
Sam Hockman, Chief Operating Officer for ENGIE’s Places& Communities Division South, said: “We have a comprehensive background inthe delivery of state-of-the-art student accommodation and our widescalecapabilities in energy, services and facilities management, means we are wellpositioned to bring Kingston University’s vision to life. Students will benefit from top of the range,energy efficient facilities and we are delighted to be partnering theuniversity and Equitix to enhance their university experience.”
ENGIE has confirmed refurbishment and building work islikely to commence in June 2019, with an anticipated completion date of August2021.
Campus Living Villages and Equitix secure new accommodation deal with the University of Bristol
A joint venture between Campus Living Villages and Equitix has been appointed as the strategic development partner for new accommodation projects at the University of Bristol. Over the next five years the partnership will provide high-quality student accommodation, beginning with the University’s new Temple Quarter Enterprise Campus.
This development will see the construction of approximately 1,200 new bed spaces, primarily for the use of students studying at the new campus. Located in the heart of the city, work at Temple Quarter is expected to start in 2019 and it is due to open in 2021/22. The consortium will design, build and operate the site for a 50-year period.
The Temple Quarter Enterprise Campus will focus on education and research for business, social and digital innovation to tackle real-world challenges. Located in the heart of the city, at Temple Quarter, it will turn a neglected area into a new destination, an open, inclusive centre for transformative innovation.
Global student accommodation provider Campus Living Villages, which owns and manages over 13,000 beds across the UK, will work closely with the University to secure input from students and tailor the design to meet their needs. It will also collaborate with the University’s pastoral care team to ensure that the development offers all students a welcoming and inclusive environment with 24/7 support available. Equitix’s team of experts will oversee all aspects of the development, from construction and acquisition to maintenance and operation and work closely with CLV and the University to ensure that the project continues to meet students’ needs.
Martin Hadland, Commercial Consultant at Campus Living Villages UK, said: “We are delighted to be entering into this partnership with the University of Bristol. The Temple Quarter Enterprise Campus will provide a fantastic opportunity for us to be at the centre of one of the University’s biggest developments to date, and we look forward to adding the new facilities to our ever-expanding portfolio of student villages.
“Our team is delighted to be partnering with such a prestigious University and excited to be providing a high quality experience to Bristol’s student community studying at the new campus. Our villages are much more than just a place to sleep. They are first and foremost about providing a community student experience - so it’s great to be working hand in hand with the University to integrate our new accommodation into its sector leading plans for improved pastoral support for residents to create a home away from home at the new campus.”
Geoff Jackson, CEO of Equitix comments: “Equitix has worked with Campus Living Villages on a number of projects over the years, bringing outstanding accommodation to students across the country. The University of Bristol is investing heavily in its facilities and we are extremely excited to be part of the Temple Quarter development that will be a benchmark for quality in higher education institutions in the UK.
Robert Kerse, CFO at the University of Bristol adds: “We chose Campus Living Villages and Equitix to be our accommodation partners because of their focus on providing a quality university experience as well as quality accommodation and our confidence in their desire to work as partners on future projects. The new campus at Temple Quarter is one of our biggest investments in recent years, and we look forward to working with them on this pivotal and exciting project.”
Equitix secures new accommodation deal with Durham University
Equitix, a leading UK infrastructure manager and developer,alongside Campus Living Villages, a global operator and investor in studentaccommodation, today announce financialclose of a major accommodation development project at Durham University.
The scheme – the Mount Oswald project – forms part of theUniversity’s strategy to deliver world-class research, education and widerstudent experience. It will see theconstruction of two new college facilities totalling nearly 1,000 additionalrooms.
Over 700 of these will be en-suite bedrooms, arranged in amix of cluster flats of between eight and 12 students. The remaining rooms willhave shared bathroom facilities arranged in townhouses and studios.
Work will begin shortly and is expected to be completed in2020. Equitix will oversee all aspects of the development in a managementservices capacity, monitoring the construction and operation of the newresidences. Interserve Construction will undertake the construction services,with Campus Living Villages overseeing the day-to-day management of the facilitiesonce delivered.
Geoff Jackson, CEO of Equitix comments: “We are delighted toadd the Mount Oswald project to our growing portfolio of student accommodation.
“Durham is one of the oldest and most prestigiousuniversities in the UK and one of the few that has remained committed to theCollegiate system. The opportunity to develop two new college facilities insuch a historic institution is both extremely rare and exciting and we areconfident that Equitix is well positioned to provide students with top-qualityaccommodation that will enhance their university experience.”
Lisa Brown, Joint Head of Operations at Campus LivingVillages said: Lisa Brown, Joint Head of Operations at Campus Living Villagessaid: “We are thrilled to become a key operator at Durham University, aprestigious and world-renowned institution, further cementing Campus LivingVillages as a University Partnership business. We have the experience todeliver the best in student accommodation and look forward to continuing to puthis into practice.”
Professor Stuart Corbridge, Vice-Chancellor at DurhamUniversity, said: “Our ambitious University Strategy, 2017-2027 aims to ensurewe continue to deliver world-class research, education and wider studentexperience. The development of two college facilities at Mount Oswald,including a brand new College and a purpose-built new home for our John SnowCollege, is a key project in delivering a wider student experience as good asanywhere in the world.
“We are pleased to have reached financial close and lookforward to work beginning on site shortly.”
Equitix acquires European social infrastructure assets and renewables portfolio from NIBC European Infrastructure Fund
Equitix, a leading UK infrastructure investor, announces that it has agreed to acquire a portfolio of social infrastructure and renewable assets from NIBC Infrastructure Partners on 2 August 2018. The portfolio includes 13 assets in the UK and Europe and, subject to closing conditions, will be acquired in a single transaction.
On completion of the transaction, Equitix will become owners of the renewables and social infrastructure assets that include UK health care, education and care home facilities, as well as renewable wind, solar and waste plants.
The NIBC European Infrastructure Fund portfolio includes investments in both the UK and Europe and will enable Equitix to increase its foothold in continental European jurisdictions, including Spain, Germany, France and Belgium, as well as to consolidate its position in UK social infrastructure assets.
Hugh Crossley, CIO of Equitix comments:“As we continue to diversify and grow our portfolio, we are always looking out for attractive opportunities to acquire high-quality assets that meet our criteria. We are confident that the NIBC European Infrastructure Fund portfolio does just this and will allow us to leverage our local expertise and grow our exposure to new European infrastructure markets.”
“We have demonstrated a strong track record in our ownership and management of a wide range of infrastructure assets and, as such, we’re pleased to be further consolidating our capabilities and adding these assets to our institutional investment portfolios.”
Equitix consortium named as preferred bidder for 1400-bed accommodation project at University of York
A consortium comprising Equitix, a market-leading investor and fund manager of core infrastructure assets, and privately-owned Graham Construction has been named as the preferred bidder for a major 1400-bed student accommodation project for the University of York.
The £113 million ‘Campus East’ development will take two years to complete, with financial close forecast for November this year and work expected to commence in January 2019.
This latest project consolidates Equitix’s reputation as a leading developer of student accommodation projects across the UK. Named the Student Accommodation Investor of the Year for 2017 by Property Week, Equitix now has well-established and durable relationships with both clients and partners across the country.
Geoff Jackson, Chief Executive Officerof Equitix, said: “We are delighted to have been selected as the preferredbidder for this project. The University of York is one of the UK’s most highlyregarded academic institutions and continues to face ever-growing demand fromstudents from around the world. The new accommodation will help meet thisinterest and ensure that the students of the University reside, study andsocialise in an environment appropriate to the University’s reputation.”
The University of York, which was established in 1963, is a Russell Group member and is ranked 16th in the University Guide 2018 published by The Times newspaper. In addition to the Campus East development, it has also committed to invest £400 million into a major programme of works across its Heslington West and Heslington East campuses to provide high quality accommodation to its growing student population.
Michael Graham, Executive Chairman of Graham Construction said, “This is another fantastic win for GRAHAM and builds on our strong pipeline of projects in the region,following the opening of our Leeds office in 2017.
“As investor and contractor Graham bring extensive experience of the student accommodation sector. The project will utilise a state-of-the-art offsite manufacturing facility located in the north of England, to provide a best in class development that will form a striking gateway to the University of York’s Heslington East Campus.
“We’re committed to providing outstanding student accommodation and the 1400 beds delivered across the first phase of this project will bring our total output to over 10,000 beds in the past 5 years.
“We look forward to not only developing this fantastic scheme, but also having a positive impact on the local community by employing local businesses, engaging with the community and constructing a sustainable development that connects with and respects York’s historic environment.”
Koen Lamberts, Vice Chancellor of the University of York, said: “We have been keen to source a partner which shares our aims of quality and commitment to excellence. The new accommodation will provide a modern environment for students which promotes their well-being and personal development.”
Equitix was established to deliver and manage infrastructure projects from bidding and closing through to construction and service provision. It is independent and is a socially responsible investor.
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