3i Infrastructure has agreed to sell its UK projects portfolio for £194m (€230m) and is planning to sell its European projects portfolio.
The London-listed closed-ended investment company said following a strategic review, it has agreed to sell the UK projects to various buyers including funds managed by Dalmore Capital, Semperian and Innisfree.
The UK projects being sold comprise stakes in Ayrshire College, Elgin, Mersey Gateway Bridge, Octagon Hospital, the West of Duddon Sands offshore transmission owner project, as well as an interest in the Dalmore Capital fund, 3i said.
The long-term investor in infrastructure businesses and assets said it is also exploring the potential sale of the European assets in its projects portfolio.
If the European assets are sold, the company’s portfolio would then consist entirely of investments in economic infrastructure businesses.
Richard Laing, Chair of 3i Infrastructure, said: “Our review of the role of operational projects in our portfolio concluded that it was in the best interests of shareholders to sell these assets and realise the value uplift now that they have all entered stable operations.
”We consider that the prices achieved are attractive.”
Phil White, managing partner and head of infrastructure, 3i Investments, investment manager of the company, said: “Holding these assets at the sales price achieved would be dilutive to the company’s returns and although the UK Projects provide good income, strong growth in income from our economic infrastructure portfolio underpins confidence that we will continue to deliver our progressive dividend objective.”
