Herbert Smith, Links, Camerons advise as UK Govt sells off assets

Herbert Smith, Linklaters and CMS Cameron McKenna have taken lead advisory roles on the £2.1bn disposal of the UK's first high-speed railway to two Canadian pension funds with the deal marking the first significant privatisation under the new coalition Government.

Herbert Smith advised longstanding client London and Continental Railways (LCR) on its sale of the Channel Tunnel rail link – High Speed 1 – with global head of infrastructure Patrick Mitchell advising Government-owned LCR.

Linklaters project finance partner Fiona Hobbs advised the purchasers – Borealis, the infrastructure investment arm of one of Canada's largest pension funds OMERS Worldwide, and Ontario Teachers' Pension Plan.

The deal was signed earlier this month (5 November) following a competitive auction, with the winning bidders gaining a 30-year concession to run the 68-mile line, which links London to the Channel Tunnel. In addition to running the line the consortium will be responsible for stations on the line such as St Pancras International and the international stations at Stratford, Ashford and Ebbsfleet.

The sale will help reduce the UK's budget deficit and provide opportunities for new services on the line.

Camerons advised a longstanding client of the firm, the UK transport ministry, with project finance partner Jonathan Beckitt leading the team.

Mitchell said: "This is effectively the first major privatisation of the coalition Government and represents a real milestone of proceeds raised for the public purse. We can expect to see more transactions which bring together the public and private sectors."

He added: "While the Government spending cuts will in some cases have an adverse effect on legal activity, elsewhere it will provide opportunities, especially when deals of this nature take place."