3i sells stake in Thameslink company Cross London Trains for £333m

Investment firm 3i Infrastructure plc has announced an agreement to sell its stake in Cross London Trains for £333m.

3i, headquartered in Jersey, is selling its 33.3% to a consortium of funds led by Dalmore Capital and Equitix Investment Management.

Cross London Trains (XLT) was established to look after 115 Siemens Desiro City Class 700 trains for use on the Thameslink passenger rail franchise.

Announced this afternoon (February 5), the sale is conditional on certain third party consents and follows a related £12m distribution that 3i received last month.

3i’s share of XLT was valued at £271m in September 2018.

As one of the UK’s largest single rolling stock fleets, XLT is is part of a wider, £7bn government-funded infrastructure upgrade to relieve congestion in London and the South East.

Richard Laing, chairman at 3i Infrastructure, said of the deal: “XLT has proved a very good investment for the company, generating significant value for our shareholders.

“Having supported the project through design, manufacturing and delivery, we believe that now is an appropriate time for the Company to realise its stake.”

3i Investments plc’s managing partner and head of infrastructure, Phil White, commented: “XLT is another successful investment for 3i Infrastructure. In partnership with our co-shareholders, our involvement since the start of the procurement programme in 2008 has helped to deliver, on time and on budget, a key element of London’s commuter rail infrastructure.”

Dalmore CEO Michael Ryan commented: “We are delighted to add XLT to our existing portfolio of rolling stock assets.

“Assets like XLT with unique fleet characteristics, demonstrable benefits for network users and long term visibility on returns are very attractive to our investors.”

Geoff Jackson, CEO of Equitix, said: “We are very pleased to have secured an interest in XLT which builds on our existing portfolio of high quality rail assets like HS1, Inter-City Express Programme West and Wales & Borders rolling stock. XLT is an excellent fit for our investors and further strengthens our position in the UK rolling stock market.”