HICL Infrastructure has sold its portfolio of seven personal pension plan (PPP) assets to Dutch pension services provider, APG, for £225m.

The portfolio comprises 50% of HICL’s investments in Southmead Hospital and Pinderfields and Pontefract Hospitals , as well as the entire equity interest in four UK LIFT projects and Edinburgh schools.

HICL’s sales have now totalled £725m over the last 24 months. The firm, which is managed by InfraRed Capital Partners, added that completion of the portfolio sale is expected before 31 December and will be subject to customary third-party consents.

Proceeds from the transaction will be used to fund HICL's £150m share buyback programme, including full repayment of its revolving credit facility and to meet existing investment commitments of £110m.

Following completion of the disposal, InfraRed will manage the assets on behalf of APG under a separately managed account agreement.

After part of the transaction, HICL has agreed a partnership framework with APG, which provides the opportunity to pursue further divestments over time. The framework also includes the option for co-investment into new assets, should opportunities arise.

Chair at HICL, Mike Bane, said: "We are pleased to announce another material disposal for the company, which again highlights both the quality of HICL's underlying portfolio and a consistent ability to execute divestments at attractive valuations. In the last two years, the company has raised over £725m through disposals, enabling the Board to deliver on its capital allocation priorities for the benefit of shareholders."

Head of core income funds at InfraRed, Edward Hunt, added: "This is another important transaction delivered by InfraRed in support of the board's objectives. The sale improves key portfolio metrics for HICL and reflects InfraRed's ability to execute highly targeted divestments. It also reinforces the through-cycle attractiveness of high-quality infrastructure assets, with pricing that underscores the company's robust NAV and highlights the continued dislocation between public and private markets."

---