AMP Capital plans first step into Japanese infrastructure market

AMP Capital is to be appointed as the adviser to GII, a Japanese company that invests in renewable energy assets across Japan. Mitsubishi UFJ Trust and Banking Corporation (MUTB), which formed a capital alliance with AMP Capital in 2011, is a silent partner in the company.

GII will invest in renewable energy infrastructure such as solar photovoltaic generation facilities across Japan, taking advantage of the growing demand for clean energy. Its first acquisition will be an operating, 2MW solar power generation facility located in Miyazaki prefecture.

AMP Capital will assist GII to acquire high quality assets as well as provide ongoing advice.

AMP Capital CEO International Anthony Fasso said: “AMP Capital has been investing in infrastructure globally for the past 25 years and we are delighted to extend our relationship with MUTB as an adviser on this exciting opportunity. We have expertise across a range of sectors from transport, such as airports, to power/utilities and already have a number of renewable energy assets in our infrastructure equity and debt portfolios worldwide.

“There has been a lot of focus on expanding the renewable energy sector as part of a shift in Japan towards such clean energy, and there is a growing need for funding for both brownfield and greenfield renewable energy projects. Providing long-term, stable funding into this area in order to support such change also has a significant community benefit.”

In the future, MUTB plans to offer Japanese institutional investors the opportunity to invest into these renewable assets through a fund vehicle. The target market will be local pension plans that are looking for investment opportunities providing stable cash flow and low correlation to traditional asset classes such as equities.

MUTB Executive Officer Osamu Hoshi said: “AMP Capital has a long history of investing in infrastructure and we are pleased to have them on this opportunity as advisers for GII. We look forward to working with AMP Capital as we look to bring it to market and expect to contribute to society as a stable funding provider in the renewable energy sector in the future.”

MUTB acquired a 15 per cent minority shareholding in AMP Capital in 2012. During the past two years, MUTB and AMP Capital have launched six retail funds and have worked closely to raise capital for AMP Capital’s Infrastructure Debt Fund II and Global Infrastructure Fund.