UniSuper extends investment in infrastructure project

The superannuation fund for Australia's higher education and research sector, UniSuper, has announced an extension of its long-term investment in one of the major infrastructure projects, Sydney's Prospect Water Filtration Plant.

Under the terms of a deal, UniSuper would extend its partnership with Sydney Water Corporation and French owned waste management and water treatment firm SUEZ for a further 14 years from 2021 to 2035.

UniSuper bought a 49 per cent stake in the water filtration plant in 2001, partnering in a joint venture with SUEZ which owned the remaining 51 per cent.

According to UniSuper's head of property and private market, Kent Robbins, the agreement provided an opportunity to enhance UniSuper's position in a quality asset.

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"UniSuper is attracted to the quality investment characteristics displayed by infrastructure," he said.

"Large scale infrastructure assets have what we term ‘fortress-like' characteristics, with their strong market positions supporting the generation of stable, long-term cash flows, making it a natural fit for superannuation funds with long-dated liabilities."

Under the agreement, the Prospect Water joint venture would continue to operate the plant 24-hours a day, filtering up to three billion litres of water per day, with the plant's general capacity to provide drinking water for up to 85 per cent of Sydney's population.