07:14, July 18 164 0

2017-07-18 07:14:08
A&O and Linklaters advise on £3bn HS1 sale

Allen & Overy and Linklaters have acted in the £3bn acquisition of HS1 for a joint venture managed by InfraRed Capital Partners from pensions funds Borealis and the Ontario Teachers.

The joint venture has purchased the entirety of the 67-mile line which runs from the Channel Tunnel to London St Pancras International, and services roughly 20 million passengers a year with four stations en route.

The consortium had been looking to sell the remainder of the 30-year contract it bought in 2010 since last year.

A&O infrastructure partners Sara Pickersgill and David Lee led on the deal with global infrastructure partner Jonathan Bevan assisting the pair.

Linklaters infrastructure partner Ian Andrews and corporate partner Michael Honan advised Borealis and Ontario Teachers on the deal.

Pickersgill said: “This was a strategically important transaction for our clients and one that brought the expertise of our dedicated global infrastructure practice to the fore.

“It was a pleasure to advise our clients on their successful acquisition of an exceptional core infrastructure asset.”

Linklaters has a good relationship with both Borealis and the Ontario Teachers after the firm advised a consortium, which included the two funds, on the £2bn sale of London City Airport last year. Indeed, Andrews and Honan advised on the consortium’s original deal when it purchased the HS1 contract for £2.1bn seven years ago. At the time, it was thought to be Teacher’s biggest deal in Europe.

Andrews described the deal as “the end of a journey, but not the relationship”.

Borealis is part of OPM – a combination of Borealis Infrastructure and OMERS Private Equity and an arm of OMERS – and has a portfolio that spans four continents and is worth more than $85bn in net assets as of December 2016.

Other European assets in its portfolio include Czech energy company NET4GAS, British water provider Thames Water and German motorway service areas provider Tank & Rast.