IFT
25/10/2013 10:04
ASSET
REL: 1004 HRS Infratil Limited
ASSET: IFT: Infratil commits to Australian PPP projects
Infratil today announced an intention to commit A$100 million to pursue
greenfield availability based public-private partnership ("PPP")
opportunities in Australia via the Australia Social Infrastructure Partners
("ASIP") platform. The ASIP platform consists of two vehicles managed by
H.R.L. Morrison & Co.; Leighton Contractors Infrastructure Partners and
Public Infrastructure Partners Australia, established in 2012. ASIP has
currently invested in 9.95% and 49.9% respectively of the equity in the
A$1.85billion New Royal Adelaide Hospital PPP and the A$232m South East
Queensland Schools PPP.
Infratil Chief Executive, Marko Bogoievski commented that, "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. 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."
The commitment establishes a new strategic alliance between Infratil and
Leighton Contractors. Leighton Contractors, a wholly-owned subsidiary of
Leighton Holdings Limited, is one of Australia's leading contracting and
project development groups, with over $13 billion work in hand and employing
more than 14,000 people across Australia, New Zealand, Papua New Guinea and
Africa. The company delivers projects for clients across the infrastructure,
mining, telecommunications, civil construction, industrial, energy, health
and services sectors.
Under the alliance arrangements between H.R.L. Morrison & Co and Leighton
Contractors, Infratil and other institutional investors have the opportunity
to participate as equity investors in future Leighton Contractors' PPP
projects via the Leighton Contractors Infrastructure Partners vehicle. The
terms of the strategic alliance allow for additional co-investment by
Infratil in Leighton Contractors' PPP projects and also provides the
flexibility to pursue greenfield projects where Leighton Contractors is not
involved.
Leighton Contractors is currently participating in bids for the Queensland
Schools, North-West Rail (NSW) and East-West Link (Vic) availability-based
PPP projects, and is well placed to succeed in bids for A$30bn of PPP
projects to be procured by state and federal governments in the near to
medium term.
Infratil's commitment in the strategic alliance is to be formalised before
year end, with Infratil's capital commitment likely to be called over a 2-3
year period as bids are awarded.
Marko Bogoievski
Chief Executive Officer
End CA:00242880 For:IFT Type:ASSET Time:2013-10-25 10:04:09
