HICL Infrastructure PLC, the FTSE 250-listed fund, has spent £34.4mln to acquire a 33.3% interest in a company that owns two ‘shadow’ roads in southern England.
Road Management Group (RMG) owns the A417/A419 from Swindon to Gloucester and the A1 (M) from Alconbury to Peterborough - both of which were said to have performed well during the pandemic while still having plenty of room to progress.
“We are delighted to be acquiring a stake in two high-quality UK road projects which provide critical transport links to their respective communities,” said Edward Hunt, director at HICL's investment manager InfraRed.
HILC said the two roads are strategically located and prosper from high volumes of traffic which removes the variable aspect of revenue for the company.
The interest was acquired from Abertis Infraestructuras, with the investment funded by HICL's revolving credit facility.
National Highways is the client of RMG and operation and maintenance of both roads is overseen by Ringway Limited, a subsidiary of Vinci Group.