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AMP Capital leverages Chinese infrastructure
The AMP Capital Asian Giants Infrastructure Fund (AGIF) has invested $2 million in a 19.11 per cent stake in Qujing Gas, which AMP Capital said it would be looking to grow to $20 million.
Qujing Gas holds a 30-year concession to run the gas distribution franchise in Qujing City in the southern province of Yunnan, and is the fund's first acquisition in China, AMP stated.
AMP Capital's global head of infrastructure, Phil Garling, described the investment in Qujing Gas as an attractively priced, early-entry strategy in a high-growth sector that positions the fund to participate in future opportunities in the gas sector in Yunnan.
"We expect rapid growth in the infrastructure sector, particularly as estimates are of a global US$25 trillion gap in government infrastructure spending over the next 25 years," Garling said.
AMP Capital's co-head of infrastructure Asia, Xiao Wei, said the investment also provides an opportunity to participate in future deals in gas and other infrastructure sectors in Yunnan, with the Chinese Central Government looking to increase gas consumption from 4 per cent to 9 per cent by 2020.
The fund also recently secured its first UK public authority pension fund client and a Japanese pension fund investor, with commitments of approximately US$66 million in total, AMP Capital announced.
AMP expects to close commitments to the seven-year-end fund in the first quarter of 2011.
AUTHOR
Mike Taylor
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