John Laing Group (JLG); realisations and investment activity in line with three-year guidance

Published on 28-06-2019 07:24:37
Author Sparks Team

John Laing Group has issued a pre-close update for the six months ending 30 June 2019 ahead of the group’s interim results on 22 August 2019. The company received £131m in proceeds from realisations completed to date in 2019. Aggregate prices achieved were in line with portfolio valuation. Realisations remain on track to reach c. £1bn over 2019-2021.

Investment activity was underpinned by the strong pipeline. The company completed £7m of investment commitments to date and advanced discussions on two investments for over £130m, expected to complete in Q3 2019. Additionally, the pipeline includes other exclusive and shortlisted positions with an investment opportunity of about £340m due to close within the next 18 months.

The company witnessed positive developments on several PPP projects, including Denver Eagle P3, Sydney Light Rail and New Generation Rollingstock.

NAV is expected to be broadly in line with management expectations on a constant currency basis at 31 December 2019. The pipeline of new investment opportunities remains strong in PPP and renewable energy, mainly in the US and Australia.

The company continues to assess other infrastructure asset classes that fit the business model and new geographies, which provide opportunities to invest alongside established partners at appropriate returns. The market for secondary assets remains strong.

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