A new player, with railway development as a core interest, is on the cusp of emerging in the UK. HICL Infrastructure and The Renewables Infrastructure Group (TRIG) have agreed to merge, creating the UK’s largest listed infrastructure trust. The deal is expected to be completed in the first quarter of 2026, pending shareholder and regulatory approvals.
While TRIG focuses on renewables, HICL brings substantial rail infrastructure to the table. Its portfolio includes stakes in High Speed 1 (the railway line between the Channel Tunnel and London St Pancras) and the Cross London Trains fleet (the rolling stock for Thameslink). The merger could enhance capital available for rail projects and unlock new growth opportunities in transport infrastructure.
Merger mechanics and scale
The proposed merger involves TRIG being voluntarily wound up and its assets transferred to HICL in exchange for newly issued HICL shares and a £350 million (€413m) liquidity package. The combined trust would have net assets exceeding £5.3 billion (€6.25bn), making it the largest listed infrastructure vehicle in the UK. HICL shareholders would own roughly 56% of the new entity, TRIG shareholders about 44%.
The merger is expected to attract new institutional capital, improve liquidity, and create scale benefits that could make future rail investments easier to finance. The boards are targeting a 9.0 pence (11c) per share annual dividend and a NAV (Net Asset Value) total return exceeding 10% per annum. What all that means is an expectation for a healthy merged company with an interest in railway assets and the cash to do something about it.
Rail infrastructure at the core
HICL’s portfolio includes a 21.8% stake in High Speed 1, the high-speed line linking London St Pancras to the Channel Tunnel. This asset provides stable, long-term concession income and underlines HICL’s position as a core transport infrastructure investor.
In addition, HICL holds a minority equity stake in Cross London Trains, which owns 115 Siemens Desiro City Class 700 trains operating on Thameslink – an extensive passenger network that connects places as far apart as Brighton and Peterborough via a core section through Central London. The fleet is covered by a 20-year availability contract backed by the Department for Transport, delivering predictable cash flows.
Strategic rationale and investor concerns
The merger blends HICL’s core infrastructure with TRIG’s renewable energy portfolio, giving the combined company exposure to both long-term transport assets and megatrends in energy. Managers from InfraRed will continue to run the combined trust. Some HICL shareholders, however, have voiced concern that the merger disproportionately benefits TRIG shareholders and exposes the fund to renewable-related risks. Critics warn that HICL’s traditionally conservative profile may be diluted.
For those focused on rail infrastructure, the merger represents a potential increase in investment capacity. With the larger capital base, HICL may recycle funds from mature assets into new rail concessions or upgrades. The combined entity could also compete for high-profile transport projects, leveraging scale and liquidity. If HICL prioritises rail in its deployment strategy, this merger could mark a turning point for long-term UK rail infrastructure investment. Did anyone mention the shortage of rail-connected warehousing and logistics parks?