Infratil sets aside A$100M for Australian PPPs over the next few years

Friday 25th October 2013

Infratil, which today took a cornerstone stake in retirement village operator and developer Metlifecare, plans to put aside A$100 million to invest in Australian public-private partnerships over the next few years.

The Wellington-based infrastructure investor will seek greenfield opportunities through the Australia Social Infrastructure platform, which consists of two vehicles managed by Morrison & Co and has holdings in the New Royal Adelaide Hospital and South East Queensland PPPs, Infratil said in a statement.

The company will set up a new strategic alliance with Leighton Contractors, a subsidiary of Australian infrastructure firm Leighton Holdings, which will be set in stone before the end of the year and will let Infratil participate as an equity investor in future projects. Infratil expects its capital will be called over a two- to three-year period as bids are won.

"Infratil has been assessing the Australian PPP market for some time, and in particular the best access point to pursue the significant pipeline of development opportunities that exists across the education, health and transport sectors," chief executive Marko Bogoievski said.

"Infratil has observed that greenfield PPP investments offer risk-adjusted development returns that are comparable to the returns available in adjacent infrastructure sectors such as greenfield Australian wind projects," he said.

The announcement comes the same day Infratil committed $147.9 million for a 19.9 percent stake in Metlifecare, its first foray into the aged sector.

Last week Infratil put a planned share buyback on hold while it mulled "potential transactions". The shares gained 1.6 percent to $2.59 at the open of the NZX today.

Infratil's manager, Morrison & Co, also manages the Public Infrastructure Partnership LP Fund, which is Auckland's Hobsonville Point schools PPP.

BusinessDesk.co.nz

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