yorkshire

Yorkshire Link sale
MIG announced today that it intends to sell its 50% interest in the 30 year
Yorkshire Link concession for £43.3m (A$113.0m) to a new Macquarie Bank
fund, Macquarie Infrastructure Assets Trust (MIAT). Book value as at Dec 03
for the Yorkshire Link investment was A$97m.
The M1–A1 link south of Leeds is a “shadow” toll road that provides very little
equity upside given that once certain traffic levels are exceeded revenue per unit
declines until “Band 4” where revenue per unit is zero. Additionally tolls decline
at cpi –2% for cars and cpi- 2.5% for trucks. We see MIG’s to sell the stake in
this concession as a sound one.
The deal is provisional on a successful closing of an initial public offering of
MIAT in the US. On the basis that MIG returns all the proceeds to security
holders, A$113m equates to c.$0.058 per security.