AXA Investment Managers – Real Assets has agreed, on behalf of its clients, to acquire 15% of Agility Trains West from John Laing for around £230m.
Agility Trains West will finance, own and maintain 57 new Hitachi Class 800 intercity express trains. The trains are subject to a government-backed 27.5-year usage guarantee and will be maintained by Hitachi. The trains are bi-modal, meaning they can operate on both electrified railway tracks and, by generating their own electricity using on-board engines, on tracks which are not electrified.
This investment will add to AXA IM – Real Assets’ existing €5bn infrastructure debt and equity portfolio managed on behalf of clients.
Mark Gilligan, head of infrastructure equity at AXA IM – Real Assets, said: “This is our first UK infrastructure equity investment. We focus on underlying earnings and Agility Trains West falls squarely within our investment objectives. We are especially pleased by the quality of the trains and our long-term partners. This follows our initial investment in the A63 toll road in south-west France and builds on our high-quality, core transportation portfolio. Our London and Paris-based team is now very much in business to continue building our managed infrastructure equity programme.”
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