According to industry sources, the Ontario Teachers’ Pension Plan and Borealis Infrastructure recently agreed to sell their stakes in Britain’s High Speed 1 (HS1) rail project to a consortium made up of the National Pension Service (NPS) of South Korea, HICL Infrastructure Company and Equitix.
The deal is for the consortium to run the railway section of Eurostar located in the United Kingdom. Eurostar is a high-speed railway service that connects London with major French cities. Each of its trains traverses the Channel Tunnel between France and the UK.
The total value of the project is estimated at approximately three billion pounds. The NPS is scheduled to take a 30 percent stake in the consortium by investing approximately 400 billion won. HICL Infrastructure is expected to pay 320 million pounds for the same portion and the remaining part is likely to be held by Equitix.
Seven years ago, the Ontario Teachers’ Pension Plan and Borealis Infrastructure bought the stakes from the British government to run the project for 30 years. The management rights acquired by the South Korean pension fund and the two British investment firms are to be effective for the remaining 23 years and five months.