HICL Infrastructure is investing in UK rolling stock by acquiring a minority stake in the Cross London Trains (XLT) public-private partnership from Equitix Investment Management funds.

The InfraRed Capital Partners-managed London-listed infrastructure fund said following completion of the deal, XLT will represent approximately 3% of HICL’s portfolio by value.

HICL’s portfolio was valued at £3.3bn (€3.9bn) at the end of the first quarter of the year, less the £107.5m proceeds from the sale of Queen Alexandra Hospital.

Edward Hunt, the head of core income funds at InfraRed Capital Partners, said: “Cross London Trains is one of the largest rolling stock fleets in the UK. Its electrified trains are modern and efficient, sustainably serving the needs of commuting and leisure travellers alike.

”This investment further contributes to the delivery of HICL’s vision to connect communities through investments in core infrastructure, while delivering long-term income to shareholders.”

The investment in XLT marks HICL’s third investment in the rail sector, after High Speed 1 and the Dutch High Speed Rail Link.

XLT was established in 2011 to finance, own and maintain 115 Siemens Desiro City Class 700 trains for the Thameslink passenger rail franchise. 

3i Infrastructure invested in XLT in June 2013, alongside Innisfree PFI Secondary Fund 2 and Siemens Project Ventures.

In March 2019, a consortium comprising Dalmore Capital and Equitix agreed to acquire 3i’s 33.33% stake in a £333m deal.

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