L&G completes £120m HS1 deal

Legal & General has completed its £120m of debt financing in support of the Equitix, HICL and Infrared consortium’s purchase of High Speed 1 (HS1).

The deal this summer was financed by LGIM Real Assets, on behalf of clients including Legal & General Retirement (LGR), and is its second investment in UK rail related infrastructure this year. LGIM helped to finance a fleet of new Bombardier trains for the First MTR South Western Trains franchise in June. 

HS1 has a 30-year concession agreement with the UK Secretary of State, to operate and manage the 68 mile line which runs from London to Ashford International and is the only high-speed railway in the UK at the moment.

Charles-Henry Lecointe, senior investment manager at LGIM Real Assets, said: “HS1 reinforces our continued commitment to investing in key UK infrastructure assets which will have a major impact on stimulating economic growth while ensuring long-term cash flow for pension funds.  As UK’s only high-speed railway, HS1 is a strategically important asset, connecting South East England with Europe and will generate stable returns for investing pension funds.”

HS1 opened in 2007 and Borealis and the Ontario Teachers’ Pension Plan acquired the railway line from the Government in 2010 before this summer’s acquisition by Equitix, HICL and Infrared.

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