2016-035

The Carlyle Group Sells Project Service to John Laing Infrastructure

Public Private Partnership Created 23 State-of-the-Art Highway Service Plazas in CT

Generates Significant Revenue for State; Created Hundreds of Jobs

New York, NY – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced it has agreed to sell Project Service LLC, the operator of 23 highway service plazas in Connecticut, to John Laing Infrastructure Fund (JLIF), one of Europe’s largest infrastructure funds, for an equity value of $105 million (£72 million). The transaction is subject to customary regulatory approvals and conditions and is expected to close in the coming weeks.

Robert Dove, Managing Director and Head of Carlyle’s infrastructure fund, said, “This is a terrific example of a public private partnership refurbishment. Travelers on Connecticut’s highways now have 23 clean and safe facilities with a range of quality food, fuel and service offerings. We have exceeded the minimum guaranteed rental income to the state every year, created hundreds of construction and permanent jobs, and partnered with the Services Employees International Union. We are grateful for the support of the state throughout construction and are confident that John Laing Infrastructure will be an excellent long-term operator of the plazas.”

Project Highlights & Benefits:

  • Total renovation of the structure, interior, and exterior of the 23 plazas
  • Facilities built to LEED Silver standards
  • $500 million in economic benefit – over the life of the concession – to the state of Connecticut
  • Created 375 jobs in Connecticut (100 construction jobs; 200 permanent jobs; 75 union custodial jobs)
  • Successful partnership with organized labor (SEIU)
  • Completed extensive Environmental, Health, and Safety improvements
  • Expanded & modernized restrooms
  • Increased use of facilities – 65% increase in food and beverage sales
  • Increased consumer choice – additional restaurants and retail tenants
  • Increased parking for cars, trucks and buses at each plaza
  • Offer free Wi-Fi and safe places to talk and text

In 2009, the State of Connecticut held a competition among private sector parties in which the private sector would fund, manage and design a complete overhaul of the 23 service plazas along I-95 and the Merritt Parkway at no out-of-pocket cost to the state. Requirements for the renovations included improved, LEED certified buildings; clean rest stops; upgraded, healthier food choices; and safe facilities for drivers and their families. This innovative structure saved Connecticut more than $150 million in construction costs.

JLIF has agreed to purchase the interest from Carlyle Infrastructure Service Plazas L.P. (an affiliate of The Carlyle Group), Doctor’s Associates Inc. (the parent company of Subway Restaurants) and Subcon, Inc. (a major Subway franchisee and developer).

A revenue sharing agreement with the state of Connecticut, which provides strong alignment of interest between the operator and the state, remains in place. The state continues to own the facility and gets operational control of it at the end of the agreement.

The current Project Service management team is expected to remain the same.

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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $178 billion of assets under management across 125 funds and 164 fund of funds vehicles as of March 31, 2016. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments -- Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions -- in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 36 offices across six continents.

Web: www.carlyle.com
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About JLIF
JLIF is one of Europe’s largest listed infrastructure funds, trading on the London Stock Exchange. As an equity stakeholder, JLIF partners with public sector counterparties across the world to deliver key local and national infrastructure projects. In return these provide long-term, inflation-linked revenue streams to the business. JLIF’s continued success is built on a collaborative approach, centred on long term relationships with its clients such that their changing infrastructure needs can be met in a timely and cost effective way.

Contact:
Elizabeth Gill
+1-202-729-5385
elizabeth.gill@carlyle.com

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