UK’S only high-speed rail line sold

TWO Canadian pension funds have sold the lossmaking high-speed railway line connecting the UK to continental Europe to a consortium of investors.

The $175.6bn (£134.2bn) Ontario Teachers’ Pension Plan and the investors in charge of the C$85bn (£51.2bn) pension plan for Ontario’s municipal workers have sold HS1, which runs from four UK stations including St Pancras and Stratford International, to UK and foreign investors.

The terms of the deal have not been disclosed but the pair bought the contract for £2.1bn in 2010. The deal is understood to have an enterprise value, which includes debt, of £3bn.

The £2.9bn London-listed HICL Infrastructure fund and the National Pension Service of the Republic of Korea have bought a 35pc and 30pc stake respectively, through advisers Infrared Capital Partners.

The outstanding 35pc is being snapped up by infrastructure fund manager Equitix, which has more than £2bn under management.

Accounts on Companies House show high finance charges pushed HS1 to a pretax loss of £83.5m in the year to March 31, although operating profits were broadly flat at £60m. The pre-tax loss was less than the £99.4m loss the previous year.

HS1 operates the 68 mile (109km) high-speed rail line from Kent to the Channel Tunnel under a 30-year contract with the Government, which was signed in 2010. It is responsible for the operations, maintenance and renewal of the track and the stations. Last year, HS1 handled more than 75,000 train services with its main train operators, South Eastern Railway and Eurostar, carrying more than 20m people.