Borealis Infrastructure, the infrastructure investment arm of the Ontario Municipal Employees Retirement System (OMERS), and Ontario Teachers’ Pension Plan announced they are undertaking a strategic review of their ownership of HS1 Ltd, the owner and operator of High Speed 1, a U.K. high-speed rail system. The review has been prompted by investment inquiries from third parties, Borealis and Ontario Teachers’ said. The pension funds acquired the 30-year concession for the HS1 network for £2.1 billion ($3.5 billion) in 2010. The network comprises the 109 kilometre rail line and stations between London and the Channel Tunnel.
Strategic review of HS1 to address inbound investment inquiries
Thursday 08 December, 2016 – London: Borealis Infrastructure (“Borealis”), the infrastructure investment manager of OMERS, and Ontario Teachers’ Pension Plan (“Ontario Teachers’”) announce that a strategic review of their ownership of HS1 Ltd (“HS1”) has been initiated. This is following a number of investment inquiries from third parties. A financial adviser will be appointed in due course. No specific timetable has been set for the review, and further updates will be made as required. The strategic review may conclude with no action.
In 2010 Borealis and Ontario Teachers’ jointly acquired the 30-year concession from the Secretary of State for Transport to operate and manage the HS1 network. The HS1 network comprises the 109-km high speed rail line connecting London to the Channel Tunnel, as well as the four international stations along the route (St Pancras, Stratford, Ebbsfleet, and Ashford). HS1 has successfully delivered a highly reliable railway to a growing number of passengers, achieved significant efficiency savings for customers and improved the passenger experience. St Pancras International station has been voted the UK’s number one railway station for the last six years in the Transport Focus National Passenger Survey.
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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 November 2010, the DfT and London & Continental Railways sold HS1 Ltd to a consortium of Borealis Infrastructure and Ontario Teachers’ Pension Plan.
About OMERS Private Markets (“OPM”)
OMERS Private Markets (“OPM”) OPM (Borealis and OMERS Private Equity) invests globally in infrastructure and private equity assets on behalf of the OMERS pension plan. Investments are aimed at steady returns to help deliver strong and sustainable pensions to OMERS members. OPM’s diversified portfolio of large-scale infrastructure assets exhibits stability and strong cash flows, in sectors including energy, transportation and governmentregulated services. OPM has offices in Toronto, New York, London and Sydney. OMERS is one of Canada’s largest pension funds with net assets of C$77 billion. For more information
About Ontario Teachers’
The Ontario Teachers’ Pension Plan (Ontario Teachers’) is Canada’s largest single-profession pension plan, with $171.4 billion in net assets at December 31, 2015. It holds a diverse global portfolio of assets, 80% of which is managed in-house, and has earned an annualized rate of return of 10.3% since the plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and its Europe, Middle East & Africa region office is in London. The defined benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario’s 316,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
Photo courtesy of HS1 Ltd