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Super fund cohort invest in NSW ports
The NSW Ports Consortium, consisting of Industry Funds Management (IFM), AustralianSuper, Cbus, HESTA, HOSTPLUS and Tawreed Investments Limited has won the bid for the 99-year leases of Port botany and Port Kembla.
The consortium partners will pay a portion of the $A5.07 billion to acquire the 99-year leases for the ports.
IFM chief executive, Brett Himbury said it was a great outcome for the people of NSW. He said it was a good model for governments to follow, particularly in light of Australia's leadership position in global infrastructure management.
"Globally, it sets a strong precedent for using private investment to grow essential public infrastructure," he said.
He said, with over 80 per cent ownership by Australian super funds, the investment would benefit the super savings of an estimated five million Australians - 1.5 million of which are in NSW.
IFM head of infrastructure, Michael Hanna hinted the investment may only be the beginning of its involvement in development in the area as the two high quality assets had considerable scope for complementary development in the future.
Hanna said IFM was positioned to lead the consortium given its experience in global infrastructure investments including strategically important gateway assets such as ports and airports.
The past month has seen IFM increase its stake in Australian Pacific Airports Corporation (APAC) while also increasing ownership of NT Airports and acquiring a 35.5 per cent stake in Manchester Airports Group (M.A.G).
The consortium members also had proven track records as long-term investors in infrastructure assets around the world, Hanna said.
HOSTPLUS recenlty announced it will fund 50 per cent of the equity for Sydney's new exhibition and entertainment district after winning a NSW bid alongside Lend Lease.
UBS and Lazard advised NSW Ports as its financial advisers while Herbert Smith Freehills served as its legal adviser.
The transaction is expected to close on 31 May 2013.
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