HICL Infrastructure Company Limited, the UK-based listed infrastructure investment company, has announced the acquisition of a further 3.4% interest in the Victorian Desalination PPP Project.

The additional interest is a beneficial interest, held via an Australian company, and was acquired from a number of private investors.  It takes HICL's overall interest in the project to approximately 9.3%.

The company had acquired a 5.85% equity interest in the AquaSure Victorian Desalination PPP Project from the InfraRed Environmental Infrastructure Fund, a fund managed by the same investment adviser, InfraRed Capital Partners, back in March 2014.

The consideration paid by HICL Infrastructure for the additional interest was A$46.0 million (£25.2 million) which was funded from HICL Infrastructure's existing cash and debt resources. The consideration is in line with the valuation of other similar assets in HICL's portfolio.

The project was procured under the State of Victoria's Partnerships Victoria Policy and is the largest desalination plant in the southern hemisphere capable of producing 444ML of drinking water per day (150GL/year). The project reached financial close in September 2009 and became fully operational in December 2012. The term of the AquaSure Project ends on 30 September 2039.

Construction of the project was undertaken by a construction joint venture of Theiss Pty Ltd and Degrémont Pty Ltd.  It is being operated and maintained by an operations joint venture of Degrémont Pty Ltd and Theiss Services Pty Ltd.