Overview
GCP Infrastructure Investments is a Jersey-incorporated, closed-ended investment company whose shares are traded on the main market of the London Stock Exchange. It aims to provide its shareholders with regular, sustained, long-term distributions and to preserve capital over the long term by generating exposure primarily to UK infrastructure debt and related and/or similar assets which provide regular and predictable long-term cashflows.
Since its launch in 2010, it has provided its investors with a high and stable stream of quarterly distributions (these have totalled 7.6p per year, for the last seven years). The fund’s income is derived from loaning money at fixed rates to entities which derive their revenue, or a substantial portion of it, from UK public-sector backed cashflows, such as subsidies. Wherever it can, it tries to secure an element of inflation-protection.
In practice, GCP has exposure to renewable energy projects (where revenue is part subsidy and part linked to sales of power), private finance initiative (PFI) and public-private partnership (PPP)-type assets (whose revenue is predominantly based on the availability of the asset, that is the owner gets paid if the asset is available for use and maintained to agreed standards, rather than say based on the level of demand or usage) and specialist supported housing (where local authorities are renting specially-adapted, residential accommodation for tenants with special needs).
We have written a number of notes which explain the workings of the fund and the sectors that it invests in
Stable income, uncertain times was our initiation note, published in January 2020. It is the most comprehensive and includes detailed descriptions of the markets that GCP operates in.
Rebased dividend, published in June 2020, looked at the reasons why the board had reluctantly decided that it needed to reduce the dividend from 7.6p to 7.0p.
Fundamentals
Price
Research History
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29 Jan 2021 1 min read
Interview with Philip Kent from GCP Infrastructure
In this week’s show, James Carthew talked to Philip Kent from GCP Infrastructure. Watch it again here. If you were looking for QuotedData’s roundup of the week’s news, this is now in the news section – just click here If there is a guest speaker you’d particularly like to hear from, please email us – research@quoteddata.com. The […]
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11 Jan 2021 29 min read
GCP Infrastructure Fund – High yield on rebased dividend
High yield on rebased dividend Whilst falling power price forecasts (the product of a range of factors, including lower gas prices and reduced demand) have weighed on GCP’s NAV in recent quarters, the good news on vaccines may provide some relief. QuotedData’s last note discussed the rationale for GCP’s rebased 7p annual dividend. Even after […]
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29 min read
GCP Infrastructure Fund – Compelling yield
Compelling yield Whilst falling power price forecasts (the product of a range of factors, including lower gas prices and reduced demand) have weighed on GCP’s NAV in recent quarters, the good news on vaccines should provide some relief. We explained the rationale for GCP’s rebased 7p annual dividend in our last note. We would note […]
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30 min read
GCP Infrastructure Fund – Compelling yield
Compelling yield Falling power price forecasts (the product of a range of factors, including lower gas prices and reduced demand, as we explain on page 10) have weighed on GCP’s NAV in recent quarters. However, the good news on vaccines should provide some relief. We explained the rationale for GCP’s rebased 7p annual dividend in […]
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08 Jun 2020 11 min read
QuotedData’s Economic Roundup – June 2020
Economic & Political Roundup Kindly sponsored by Allianz A collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell […]
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01 Jun 2020 15 min read
GCP Infrastructure – Rebased dividend
Rebased dividend GCP Infrastructure will be 10 years old in a few weeks. Since 2012, it has paid a stable 7.6p per year dividend backed largely by UK public sector cashflows and achieved modest growth in net asset value (NAV). The yield premium that GCP delivers relative to UK government debt securities has increased significantly […]
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15 min read
GCP Infrastructure – Rebased dividend
Rebased dividend GCP Infrastructure will be 10 years old in a few weeks. Since 2012, it has paid a stable 7.6p per year dividend backed largely by UK public sector cashflows and achieved modest growth in NAV. The yield premium that GCP delivers relative to UK government debt securities has increased significantly over the past […]
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29 May 2020 2 min read
QuotedData’s weekly roundup 29 May 2020
James Carthew’s weekly news roundup show for Friday, 29 May, covers a wide range of topics and includes an interview with David Cornell, manager of India Capital Growth. Listen back here If there is a guest speaker you’d particularly like to hear from, please email us – research@quoteddata.com. Next we’ll be back on 5th June […]
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07 Apr 2020 7 min read
QuotedData’s Economic Roundup – April 2020
Economic & Political Roundup Kindly sponsored by Allianz A collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell […]
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30 Jan 2020 39 min read
GCP Infrastructure – Stable income, uncertain times
Stable income, uncertain times For almost 10 years, GCP Infrastructure (GCP) has met its objective of delivering high and stable income with low volatility of returns, while preserving investors’ capital. The mix of assets that it lends against has evolved as the investment adviser has sought out alternative sources of public sector-backed cash flow. A […]
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40 min read
GCP Infrastructure – Stable income, uncertain times
Stable income, uncertain times For almost 10 years, GCP Infrastructure (GCP) has met its objective of delivering high and stable income for its shareholders with low volatility of returns, while preserving their capital. The mix of assets that it lends against has evolved as the investment adviser has sought out alternative sources of cash flows […]
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07 Jun 2019 4 min read
QuotedData’s investment companies roundup – June 2019
Investment Companies Roundup New research Over May, we published notes on Shires Income, Standard Life Private Equity and The North American Income Trust. You can read all these notes by clicking on the links above or by visiting www.quoteddata.com. In this issue Performance data – it was notable that risk appetite was down in May as renewed […]
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7 min read
QuotedData’s economic roundup – June 2019
Economic & Political Roundup A collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell any of the […]
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18 Jan 2019 2 min read
QuotedData’s economic roundup – January 2019
QuotedData’s economic roundup – January 2019 is a collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell any of […]
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16 Oct 2018 2 min read
Quarterly Investment Companies Roundup – Third Quarter 2018
Quarterly Investment Companies Roundup – Third Quarter 2018 Global equities delivered positive returns over the third quarter of 2018. This was principally because of strength in the US market. Political uncertainty and concerns about global trade held back other regions. Generally, government bond yields rose over the quarter. The UK equity market fell as the Bank of […]
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18 Apr 2018 2 min read
QuotedData’s Economic round up – April 2018
QuotedData’s economic round up – April 2018 is a collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell […]
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07 Feb 2018 2 min read
QuotedData investment companies roundup – February 2018
QuotedData investment companies roundup – February 2018 – is our latest roundup of news; price, NAV and discount movements; flows in and out of the sector and report on full year dividends announced over the month of January 2018. Kindly sponsored by Baillie Gifford. The oil price was up again over the month and this helped propel […]
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18 Jan 2018 2 min read
QuotedData – 2017 review of the year
QuotedData – 2017 review of the year – Many commentators, including us, were wary going into 2017. In the event, economic growth and markets surprised on the upside: US markets hit new highs despite three interest rate rises. Perceived low/no growth areas such as Europe and Japan burst into life. Asia’s technology stocks surged. India’s […]
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10 Jan 2018 2 min read
QuotedData’s economic round up – January 2018
QuotedData’s economic round up – January 2018 – is a collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or […]
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2 min read
QuotedData investment companies roundup – January 2018
QuotedData investment companies roundup – January 2018 – is our latest roundup of news; price, NAV and discount movements; flows in and out of the sector and report on full year dividends announced over the month of December 2017. Kindly sponsored by Baillie Gifford. January Investment Companies Roundup Winners and losers in December Infrastructure India’s share price […]
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19 Oct 2017 2 min read
Quarterly investment companies roundup – Third quarter 2017
Quarterly investment companies roundup – Third quarter 2017 – Markets moved up a little over the course of the three months ended 30 September 2017. Regionally, emerging markets did well. The pound strengthened a bit relative to the US dollar but was flat against the euro. The oil price rose by more than 20%. In […]
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14 Jun 2017 2 min read
QuotedData’s economic round up – June 2017
QuotedData’s economic round up – June 2017 – is a collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or […]
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16 May 2017 2 min read
QuotedData investment companies roundup – May 2017
QuotedData investment companies roundup: Our latest roundup of news; price, NAV and discount movements; flows in and out of the sector and report on full year dividends announced over the month of April 2017. Kindly sponsored by Baillie Gifford. Money in: The only new launch in April was EJF Investments, a £69m fund trying to take advantage of […]
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31 Jan 2017 1 min read
QuotedData – 2016 review of the year
Our review of 2016 includes performance data, significant moves in discounts and premiums, money raised and money handed back, major news stories and links to the research we have published including our guide to investment companies. 2016 Annual roundup
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27 Oct 2016 1 min read
Quarterly investment companies roundup – Third quarter 2016
Q3 saw the market adapt to life post the UK’s EU referendum. Sterling continued to fall but most stock markets stabilised and discounts narrowed across most sectors. While the US election is dominating headlines, it does not seem to be having much impact on markets so far. q3-quarterly-roundup
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27 Apr 2015 1 min read
The importance of income – where to find it?
Life used to be simpler. If you had a bit of spare cash or you wanted to save up for something you’d just stick some money in a bank or building society account. If you had a nest egg and wanted to invest it in something safe and live off the income, you’d maybe buy […]
News
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17 Dec 2020 2 min read
GCP Infrastructure results reflect lower electricity prices
GCP Infrastructure results reflect lower electricity prices – For the year ended 30 September 2020, the company is reporting a fall in its NAV from 111.66p to 103.99p and a return to shareholders of -2.0%. Highlights are: Dividends of 7.6 pence per share for the year to 30 September 2020 (30 September 2019: 7.6 pence). […]
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04 Dec 2020 3 min read
Gravis Capital ties up with Orix Corporation
Gravis Capital Management Limited (Gravis), the manager of GCP Infrastructure, GCP Student Living and GCP Asset Back Income, has announced that it has entered into a strategic partnership with ORIX Corporation (ORIX) whereby ORIX will acquire a 70% equity stake in the Gravis business. ORIX is a diversified financial services group. The announcement says that ORIX’s […]
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12 Oct 2020 2 min read
QuotedData’s morning briefing 12 October 2020
In QuotedData’s morning briefing 12 October 2020: Henderson Alternative Strategies reports that cash accounts for about 74% of the portfolio as at 9 October 2020. The manager expects that the cash level will rise to about 79% by mid-November 2020. Given the high percentage of cash in the portfolio, the current intention is to put forward […]
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29 May 2020 3 min read
GCP Infra trims dividend target to reflect market yields
GCP Infra trims dividend target to reflect market yields – In its half-year statement, released this morning, GCP Infrastructure has announced that it will trim its dividend target from 7.6p per year to 7p per year. This still leaves it trading on a yield of 5.9%, based on last night’s closing price. 10 years after […]
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15 May 2020 2 min read
QuotedData’s morning briefing 15 May 2020
In QuotedData’s morning briefing 15 May 2020 Having collected 100% of rents due at the end of March, Triple Point Social Housing REIT has raised its dividend target for the year ended 31 December 2020 to 5.18p, 1.7p up on the figure for 2019. It has also appointed Stifel Nicolaus Europe Limited as sole corporate broker and […]
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20 Mar 2020 2 min read
Covid-19 update from GCP Infrastructure Investments
GCP Infrastructure Investments (GCP) has released the following update: “GCP seeks to provide investors with exposure to a diversified portfolio of UK infrastructure projects, which are by their nature long-term investments. The directors and the company’s manager, Gravis, believe such investments are well placed to weather the uncertainty driven by Covid-19 over the long term. Substantially […]
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14 Feb 2020 1 min read
QuotedData’s other news 14 February 2020
In QuotedData’s other news 14 February 2020 Shareholders approved JPMorgan Asia’s change of name to JPMorgan Asia Growth and Income. The ticker becomes JAGI. GCP Infrastructure has confirmed that Clive Spears retired as a non-executive director at its AGM. Ian Reeves CBE, the chairman, commented, “I would like to thank Clive for his invaluable support, dedicated […]
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16 Jan 2020 1 min read
GCP Infrastructure NAV slips on power price fall
GCP Infrastructure NAV slips on power price fall – GCP Infrastructure says that its NAV fell by 2.08p or 1.86% over the final quarter of 2019. The valuation agent, Mazars LLP carries out a fair market valuation of GCP’s investments on a quarterly basis. NAVs are based on a discounted cash flow methodology (estimating future cash flows […]
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23 May 2019 2 min read
GCP Infrastructure Investments discusses social housing in results announcement
GCP Infrastructure Investments discusses social housing in results announcement – GCP Infrastructure Investments (GCP) has reported half-yearly results for the period ended 31 March 2019. Key numbers from the period include: Shareholder total return for the period of 4.5% (31 March 2018: -3.8%). Profit for the period of £33.6m (31 March 2018: £39.5m). Loans advanced totalling […]
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20 May 2019 1 min read
QuotedData’s other news 20 May 2019
John Laing Environmental Assets Group (JLEN) has announced the appointment of Hans Joern Rieks as a non-executive director of the company, commencing 13 June 2019. LXi REIT (LXI), the specialist inflation-protected very long income REIT, has reported annual results for the year ended 31 March 2019. LXI’s leases are typically 20 to 30 years to expiry […]
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1 min read
GCP Infrastructure agrees £64m financing commitment
GCP Infrastructure (GCP) predominantly invests in UK infrastructure debt. The company has this morning announced that it has entered into a conditional commitment to subscribe for two new loan worth around £64m. If issued, the loan notes will be used to finance an investment in the subordinated debt and shareholder interests of an operational onshore […]
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14 Dec 2018 4 min read
GCP Infrastructure holds steady against a market backdrop of uncertainty and volatility
GCP Infrastructure Investments (GCP) has announced its annual results for the year ended 30 September 2018. During the year, GCP maintained its dividend at 7.6p, increased its NAV by 1.7% to 112.49p per share and provided a share price total return of 4.8%. Ian Reeves, the fund’s chairman describes these results as being achieved, “against […]
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12 Jul 2018 2 min read
GCP Infrastructure on First Priority Housing
GCP Infrastructure on First Priority Housing – Civitas Social Housing was not the only fund with exposure to First Priority Housing, the housing association that got itself into difficulties when it ended up with a lot of empty properties. On 22 February 2018 the Board of GCP Infrastructure announced that the directors and the investment adviser, Gravis Capital Management, were monitoring […]
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29 Jan 2018 1 min read
GCP Infrastructure provides solar funding
GCP Infrastructure provides solar funding – The board of GCP Infrastructure says that the company has subscribed for three new loan notes for a consideration of c.GBP105 million. The loan notes, with an expected term ranging between 22 and 24 years, will be used to provide funding for the acquisition of twenty two ground mounted and […]
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14 Dec 2017 2 min read
GCP Infrastructure notes demand for dependable and predictable income
GCP Infrastructure notes demand for dependable and predictable income – GCP Infrastructure has announced results for the year ended 30 September 2017. The highlights are: Total shareholder return for the year of 2.6% and total return since IPO in 2010 of 97.8% NAV per ordinary share at 30 September 2017 of 110.57 pence (2016: 109.67 […]
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26 Apr 2017 1 min read
GCP Infrastructure commits £40m to social infrastructure
GCP Infrastructure has committed to subscribe for a loan note of up to £40 million in aggregate, the proceeds of which will be used to finance supported living units for occupation by adults with learning or physical difficulties. The Loan Note, with an expected term of c.35 years, will be used to provide funding for […]
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20 Apr 2017 2 min read
GCP Infrastructure – funding for Green Investment Bank
GCP Infrastructure – funding for Green Investment Bank – The Board of GCP Infrastructure notes the announcement by Macquarie Group today in respect of its acquisition of the UK Green Investment Bank. The Board confirms that the company has entered into a conditional, binding commitment with a Macquarie-owned entity to subscribe for a series of loan […]
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14 Dec 2016 3 min read
GCP returns 15.6% during year and continues to grow
GCP Infrastructure Investments has announced its annual results for the year ended 03 September 2016. During the year, the company says it provided a share price total return of 15.6% and a total return since its IPO of 91.1%. Profit for the year was £54.4m, an increase of 11.7% year-on-year (2015: £48.7m), and the company […]
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18 Nov 2016 1 min read
GCP Infrastructure Investments placing aims to raise £60m
GCP Infrastructure Investments has announced a placing of new Ordinary Shares under its placing programme. The Placing will seek to raise gross proceeds of approximately £60 million in accordance with the prospectus. The company says that the placing is being effected to allow it to take advantage of a number of attractive investment opportunities in […]
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10 Oct 2016 2 min read
GCP invests £60m in social infrastructure
GCP Infrastructure has announced that it has committed to subscribe for two loan notes of up to GBP60 million in aggregate, the proceeds of which will be used to finance supported living units for occupation by adults with learning or physical difficulties. The first Loan Note, for up to GBP50 million and with an expected term […]
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28 Jul 2016 8 min read
F&C Managed Portfolio beats benchmark despite widening discounts
F&C Managed Portfolio reports that, for the company’s financial year to 31 May 2016, the NAV total return (i.e. adding dividends paid to capital performance) was -4.8% for the Income shares and -4.5% for the Growth shares which represented outperformance against the -6.3% total return for the FTSE All-Share Index, the benchmark index for both […]
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27 May 2016 4 min read
GCP infrastructure benefits from revaluations and accretive share issuance
GCP Infrastructure Investments has announced its interim results for the half year ended 31 March 2016. During the period, the company advanced loans totalling £46.4msecured against UK renewable energy, social housing and PFI projects, with a further £11.5 million advanced post period end. The company also made a profit of £21.9m and has paid a […]
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18 Apr 2016 1 min read
GCP refinances solar loan
On 25 March 2015 the GCP Infrastructure announced the completion of a loan with an aggregate value of £59.7 million secured on a senior basis against the cash flows arising from a number of portfolios of domestic solar panel installation in England. They have now announced the completion on 14 April 2016 of a refinancing by Aviva of […]
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04 Nov 2015 1 min read
GCP Infrastructure commits £25.5m to Social Housing
GCP Infrastructure Investments has announced that it has completed a transaction in which it has subscribed for a loan note with an expected term of approximately 35 years and an initial value of up to £25.5m (when fully drawn). The Company advanced approximately £1.4m on the completion of the transaction and the majority of the […]
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24 Aug 2015 1 min read
GCP extends funding to biomass plants
GCP Infrastructure has completed a transaction subscribing for a loan note to be used to fund biomass plants, with a term of 17 years and a value of up to £62.9m, £36.6m of which was advanced at completion and the remainder is expected to be drawn down over the next few months subject to various conditions. The Loan […]
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09 Jul 2015 2 min read
Budget changes to Climate Change Levy hit Renewables
Changes in yesterday’s budget in relation to the Climate Change Levy (removal of Climate Change Levy exemption) for renewable electricity have had a knock-on effect on the net asset values of companies operating in the renewable energy sector as it changes the assumptions used to calculate them. Greencoat UK Wind says it was already factoring […]
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22 May 2015 2 min read
GCP Infrastructure Investments see half year profits rise 17%
GCP Infrastructure Investments has announced its results for the six months ended 31 March 2015. Profit for the period was £22.1m, which is a 16.9% increase year-on-year and the company was trading at an 11% premium to its NAV as at 31 March 2015. An additional £70m of equity was raised during the period, through a placing ,whilst […]
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09 Jan 2015 2 min read
GCP invests in domestic biomass boilers
GCP Infrastructure has announced that it is committing up to £25m to loan notes with about a ten year life that will be issued by GCP RHI Boiler 1 Limited. The loan will be secured against a portfolio of domestic biomass boilers. £4m will be drawn down at the start of the arrangement and the […]
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24 Dec 2014 1 min read
GCP Infrastructure lends against social housing
GCP Infrastructure has completed a £12.3m investment in a loan note issued by GCP Social Housing 1 Limited. £1.4m of this money has already been committed and the rest will be deployed over the next five months. The loan note has a life of 35 years and will be used to provide a loan facility secured on […]
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19 Dec 2014 1 min read
GCP Infrastructure says some infrastructure assets getting too expensive
GCP Infrastructure has published its annual results for the year ended 30 September 2014. The return to shareholders over that period was 15%. 7.6p of that came as dividends. The fund expanded quite a bit (by £170m) over the year and since the year end. The manager says that certain areas of the infrastructure market […]
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21 Nov 2014 1 min read
GCP raises cash and invests in Biomass plant
GCP : GCP raises cash and invests in Biomass plant GCP Infrastructure has simultaneously announced that it has raised £70m from investors and that it is investing £20m into GCP Biomass 4 Limited. They have placed 63.6m shares at 111.75p, raising gross proceeds of £70m. The announcement says the placing was “significantly oversubscribed”. GCP Biomass […]
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27 May 2014 1 min read
GCP Infrastructure Investments : GCP – new investment
GCP Infrastructure Investments is investing £7m in loan notes issued to fund a small hydroelectric scheme based in Scotland. The total value of the loan notes is £7m and the money is being lent at 9% per annum for a period of about 18 years. The scheme generates almost 2MW of electricity and is already […]
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23 May 2014 1 min read
GCP Infrastructure Investments : GCP – interims
GCP Infrastructure Investments has released its interim accounts and these show the company generating a total shareholder return of 4% for the six months to the end of March 2014. The company expanded via a C share, raising £80m, and has made a number of acquisitions as it invests that money. They say the investment […]
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12 May 2014 1 min read
GCP Infrastructure : GCP – further investment
GCP Infrastructure has announced that it has invested a further £12.5m in loan notes issued by its Biomass entity. These have a 12 year life and a coupon of 10.5%. The money is being used to build 500KW anaerobic digestion plants in Northern Ireland.
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28 Jan 2014 1 min read
GCP Infrastructure : GCP – investments
GCP Infrastructure has invested just shy of £5m in loan notes with a yield of 9.3% at 20 year maturity. The borrower is GCP Rooftop Solar 4 Limited – a portfolio of domestic solar panel installations installed by A Shade Greener. The loan will be serviced from income derived from the Government’s Feed-in-tariff scheme. The […]
Upcoming Events
Videos
In The Press
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27 Nov 2020 2 min read
Bargains abound as investment trust sector yield spikes to 21st century high
Bargains abound as investment trust sector yield spikes to 21st century high Unweighted yield hit 5.2% at end-October David Brenchley, Investment Week, 25 November 2020 Income has been hard to come by for UK investors in recent years, and this was particularly the case in 2020 as Covid-19 wreaked havoc on dividends from stocks around […]
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23 Jul 2020 2 min read
Investment trust insider on infrastructure
Investment trust insider on infrastructure – James Carthew: infrastructure trusts look safer than equity While we haven’t yet seen a new issue, the market for fundraising by investment companies appears to be fairly healthy despite the wider economic malaise. If you are raising money in the current environment, it helps if your investments aren’t much correlated […]
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16 Apr 2020 2 min read
Alternative income trusts for the dividend drought
Alternative investment trusts for the dividend drought By Dave Baxter, Investors Chronicle, 16 April 2020 Some 45 per cent of UK companies had scrapped their dividends by 5 April and the situation is likely to deteriorate… But equity trusts are not the only source of income – many investment trusts focused on alternative asset classes such […]
