Bruno Alves
Europe’s largest insurance company could double its investments in infrastructure and other alternative asset classes – such as private equity and real estate – to €30bn. The new strategy aims to counteract lower returns on traditional investments.
The Portuguese infrastructure fund was launched in 2008 with a target of €500m. Two years on, the fund has completed its fourth investment but is now targeting a less ambitious €200m. InfrastructureInvestor caught up with CEO Manuel Cary to learn about the fund’s strategy in the wake of the financial crisis.
The infrastructure investors have each acquired a 12.5% stake in the £1.7bn Bart’s Hospital PFI – the UK’s largest hospital PFI. The sellers were the Commonwealth Bank of Australia and John Laing. Both DIF and Innisfree have lately been active in the secondary market for PFI projects.
The Portuguese infrastructure fund has formed a joint-venture with Polish company NDI to hold a 25% stake in the concessionaire that is building and maintaining the northern section of Poland’s A1 highway.
The Australian infrastructure fund plans to use the £168m it has just received from the sale of a UK water company to reinforce its capital position and deleverage over the next two years.
The Belgian transmission operator said today it is planning to buy a controlling stake in Vattenfall’s German grid. Vattenfall reopened the auction for its grid in November after exclusive talks with a Goldman Sachs/Allianz/RREEFF consortium broke down over price.
A new law is set to be approved in February that will allow the government to launch a three-year, €15bn infrastructure programme, to be procured in conjunction with the private sector. The new law will allow the government to guarantee private sector debt.
The Australian investor is said to be in talks with the Canada Pension Plan Investment Board and the Abu Dhabi Investment Authority to submit a joint bid for French firm EDF’s UK electricity network. Goldman Sachs and Lexicon Partners are reportedly advising the consortium on their bid.
The BNP Paribas-sponsored infrastructure fund has acquired about a third of the Pisto Group from several of Macquarie’s infrastructure funds. Pisto is a holding company for three oil storage and transportation operators in France.
Mexican firms IDEAL and ICA together with Spain’s Acciona Agua and a subsidiary of Japanese investor Mitsui & Co. have won a $726m contract to build and operate one of the world’s largest wastewater treatment plants. The plant will be located close to Mexico City.