HICL increases stake in French toll road

Following the incremental investment, HICL will hold a 24% interest in the asset.

  • HICL first invested in the A63 in 2017
  • The asset is a 40-year toll-road concession to design, upgrade, finance, operate and maintain a 104km section of the existing A63 in southwest France
  • HICL Infrastructure is a long-term investor in infrastructure assets

HICL has agreed to acquire a further 3.1 percent interest in the A63 Motorway concession in France for approximately £20 million ($25 million; €23 million) from a co-shareholder.

Following the incremental investment, HICL will hold a 24 percent interest in the asset.

The asset is a 40-year toll-road concession to design, upgrade, finance, operate and maintain a 104km section of the existing A63 between Salles and Saint-Geours-de-Maremne, in southwest France.

A63 benefits from its strategic positioning as a trans-European transport corridor, which has resulted in historically resilient traffic performance, according to HICL.

HICL first invested in the A63 in 2017, and InfraRed Capital Partners, the investment manager to HICL, invested in 2011.

“We are pleased to have increased HICL’s stake in this high-quality European transport link, which InfraRed has successfully managed for over ten years,” said Edward Hunt, head of core income funds at InfraRed. “While the bar for acquisitions remains high, incremental investments such as this demonstrate the attractive risk and reward dynamic that can be captured by nimble investors in the current market in specific circumstances.”

HICL Infrastructure is a long-term investor in infrastructure assets which are
predominantly operational. The firm is headquartered in London.

InfraRed Capital Partners is the investment manager to HICL. It has offices in offices in London, New York, Seoul and Sydney.