InfraRed Capital Partners has won a 22-year mandate to manage European social infrastructure assets on behalf of APG, the largest Dutch pension services provider.
The newly formed separately managed account will be seeded with a £225m (€260m) portfolio of core UK assets acquired from HICL Infrastructure, a listed infrastructure investment company managed by InfraRed.
The seven assets are spread across health and education projects, including Southmead Hospital in Bristol, Pontefract Hospitals and Edinburgh Schools. The agreement also provides the opportunity for HICL “to pursue further divestments over time” and includes the option for co-investment into new assets, “should attractive opportunities arise”, the infrastructure manager said.
InfraRed said the mandate would cover core and core-plus infrastructure.
Last year, Jan-Willem Ruisbroek, managing director of global infrastructure and private natural capital at APG, told IPE Real Assets that APG would “like to be as active and influential and as large as possible in social infrastructure”.
Michael Straka, head of capital formation at InfraRed, said: “We are delighted to deepen our relationship with APG, a highly sophisticated infrastructure investor. This long-term mandate is a testament to the track record we have built over the past 25 years and the capabilities of our platform, drawing on our particular strength in meeting our investors’ requirements with customised solutions.
“We look forward to working closely with APG over the coming years to capture long-term social infrastructure opportunities across Europe.”
Marjolaine Lopes, Europe social infrastructure lead at APG, said: “This transaction marks a meaningful step in expanding our social infrastructure portfolio, providing access to high-quality assets in the UK healthcare and education sectors. We look forward to working with InfraRed to further enhance the value of these investments. As we continue to grow our infrastructure exposure, we remain committed to delivering strong financial outcomes while contributing to a more sustainable future.”
Mike Bane, HICL chair, 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.”
Completion of the portfolio sale is expected before 31 December 2025.
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