Foresight Group (Foresight) is pleased to announce the completion of the acquisition of the equity and loan note interests in Drumglass High School PFI Project (The Project).
Foresight funded the acquisition from cash raised through its innovative Infrastructure VCT Shares which was the single largest VCT fund raising in 2011/12 tax year having raised £33 million to invest in secondary market PFI and wider infrastructure projects.
The Project is a 26 year concession to design, build, finance and maintain a 6,800m2 secondary school in the town of Dungannon, Northern Ireland. Construction of the facility began in July 1999 and completed in August 2000.
Secondary market PFI assets form a key component of Foresight’s wider infrastructure investment portfolio and Foresight is in exclusive discussions to secure further acquisition targets.
Richard Thompson, Senior Investment Manager at Foresight commented : "This is a good quality, strong yielding PFI asset that matches our investors risk / return criteria and that has been very well managed by a leading infrastructure fund. It fits our investment strategy of both monetising consistent yielding assets from infrastructure funds and acquiring assets from primary investors where additional value enhancement opportunities exist. We anticipate securing further investments both through our Infrastructure VCT share class, which enables us to be very competitive on smaller assets, and through Foresight ITS which has an evergreen fundraising plan targeting deployment of up to £50m per annum in larger ticket PFI and infrastructure transactions.”
Foresight is actively seeking further investments in the market and in addition to monies from Infrastructure VCT shares expects to deploy funds raised through the Foresight Inheritance Tax Solution ("Foresight ITS”) which will also be targeted at UK infrastructure investments.
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Notes to editors:
Foresight is an independent alternative asset manager, which focuses primarily on investments in unquoted UK and European companies or projects and offers investors exclusive access to attractive income and growth opportunities.
Foresight has in excess of £650 million assets under management across a number of funds, including Limited Partnerships, Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs).
Foresight manages the most successful VCT of all time, Foresight VCT (source Tax Efficient Review), which has returned more than 180% of the fund to investors in dividend payments since launch in 1997. Foresight VCT was the best performing VCT in 2011 with a growth in its share price of 51% (Source AIC).
In the solar sector, Foresight’s solar funds have invested in more than £310 million of operating PV assets in the UK, Italy and Spain.
Foresight recently successfully closed fundraisings for Foresight Solar VCT at £38m and Foresight Solar EIS at £27.5m and raised £33 million for its innovative Infrastructure VCT Share class in 20011/12.
In early 2012, Foresight launched Foresight ITS, an Inheritance Tax Solution product that uses Business Property Relief (BPR) qualifying investments to provide IHT exemption after two years.