POWERED BY MOMENTUM MEDIA
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.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
