Listed fund will be invested in mature infrastructure assets
PPP specialist John Laing has said it intends to list an infrastructure fund raising up to £270m to invest in mature infrastructure assets.
Laing will sell up to £256m of yielding infrastructure assets to the newly formed John Laing Infrastructure Fund (JLIF).
After meeting issue costs, JLIF will use the proceeds of the share issue to purchase interests in a number of mature infrastructure assets.
John Laing has committed to retain an equity interest in JLIF of no less than 20% and will continue to manage the assets on behalf of JLIF.
John Laing will continue to be responsible for day to day management of the disposed assets, providing continuity of personnel and expertise in the running of the projects.
Adrian Ewer, chief executive of John Laing, said: “The 19 infrastructure projects we are selling to JLIF have been successful developments for us. We have brought these assets through to the stage when they have become attractive, high quality and stable assets with a robust yield profile”.
He added that the initiative will provide the funds to continue to grow the business and also maintains the firm’s involvement in the long-term management of the assets.
As other assets in the company’s portfolio move through construction and into the operating phases in the coming years, it will be able to make further sales and to provide JLIF with the opportunity to add “significant scale”.