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AXA Investment Managers Real Assets (AXA IM) is the asset management arm of the AXA Group. In response to client demand, AXA IM decided to extend its real estate expertise to infrastructure and focus on expanding across transportation, utilities and digital infrastructure in Europe. We approached them with a major investment in UK rail infrastructure.
Shaping the deal
Arup’s business and investor advisory team worked on behalf of AXA IM to acquire a 15% stake in Agility Trains West from John Laing for approximately £230 million – making this its first direct investment in UK infrastructure. Our team structured all financial elements of the deal, which included raising capital, building robust financial models as well as evaluating the underlying potential of the project.
Project Summary
15% stake aquired in Agility Trains West
£230mtotal deal purchase of assets
+30 yearsrolling stock investment in the UK
“I thoroughly enjoyed working with the Arup Corporate Finance team and found their input and support to be invaluable. I look forward to working with them on more such challenging projects and would not hesitate in recommending them to others looking to invest in the Infrastructure sector. ” Jeffrey Woodard Principal, AXA Investment Managers
Our corporate finance arm led the bid strategy, assessed competitors and undertook financial structuring. We also led the overall process and management of other key advisers (such as legal, technical, commercial and tax and accounting) as well as the due diligence process. Our role included leading negotiations on the sale and purchase agreement and managing the execution of the transaction.
Arup was also responsible for developing the valuation model and business plan to optimise the bid. We structured the deal to ensure that the risk of unpredictable future revenues was managed efficiently – ensuring a successful balance between the commercial challenges and the change in risk profile.
UK market investment for AXA
This deal marked the first successful infrastructure equity investment for AXA IM in the UK, solidifying their position as a major infrastructure investor with a strong foundation to continue building on their managed infrastructure equity program.
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