Legal & General announces that it has provided circa £120m of debt in support of the Equitix, HICL and Infrared consortium’s purchase of High Speed 1 (HS1), the high-speed railway connecting London to the Channel Tunnel.
27 Sep 2017
The deal was financed by LGIM Real Assets, on behalf of clients including Legal & General Retirement (LGR), and represents its second investment in UK rail related infrastructure this year after it helped to finance a fleet of new Bombardier trains for the First MTR South Western Trains franchise in June.
The 68 mile line, which opened in 2007, runs from the capital to Kent connecting St Pancras International station with the Channel Tunnel and serves four stations including St Pancras International, Stratford International, Ebbsfleet International and Ashford International. HS1 has a 30-year concession agreement with the U.K. Secretary of State, to operate and manage the railway and the stations along the line, which is the only high-speed railway in the UK at the moment, while plans are being made for High Speed 2.
Charles-Henry Lecointe, Senior Investment Manager, 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.”
Kerrigan Procter, Managing Director of LGR, said: “Legal & General has invested £12 billion in UK infrastructure, direct investments and urban regeneration projects to date, and aims to invest a further £15 billion. Our financing of this major infrastructure project is a strong investment fit for us as the long term income it produces helps to pay our customers’ pensions, as well as creating new jobs and driving economic growth - which is good for business and our customers.”
HS1 Ltd has the 30 year concession to own and operate High Speed 1, the UK’s first section of high speed rail, as well as the stations along the route: St Pancras International, Stratford International, Ebbsfleet International and Ashford International. In July 2017 HS1 Ltd. was acquired by a consortium comprising of funds advised and managed by InfraRed Capital Partners Limited and Equitix Investment Management Limited
LGIMRA is a division of Legal & General Investment Management (LGIM), one of Europe’s largest
institutional asset managers and a major global investor. LGIM manages £1.29 trillion1 ($1.57tn) in
assets, working with a range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
LGIM Real Assets has assets under management of £36 billion2 ($43.8bn) and is one of the largest
private markets investment managers in the UK. Investing in both debt and equity and across the
risk/return spectrum, LGIM Real Assets actively invests in and manages assets across commercial,
operational and residential property sectors, as well as infrastructure, real estate, corporate and
Taking a long-term view in order to future proof our investments, LGIM Real Assets continues to lead the industry in ESG performance, considering all environmental, social and governance issues at asset level as well as portfolio level.
1LGIM internal data as at 30 June 2022. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions.
2Source: LGIM Real Assets. AUM data as at 30 June 2022.
*at 13 Jan 2023
For professional clients only. Past performance is not a guide to the future. The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Views expressed are of LGIM as at 12 January 2023. The Information in this document (a) is for information purposes only and we are not soliciting any action based on it, and (b) is not a recommendation to buy or sell securities or pursue a particular investment strategy; and (c) is not investment, legal, regulatory or tax advice. Legal & General Investment Management Limited. Registered in England and Wales No. 02091894. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119272.