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AMP Capital’s Community Infrastructure Fund increases stake in Victorian Desalination Project
AMP Capital has increased its stake in the Victorian Desalination Project (VDP) on behalf of investors in its Community Infrastructure Fund (CommIF).
VDP was delivered as a public private partnership (PPP) and is the largest desalination plant in the Southern Hemisphere. It is a rainfall-independent source of drinking water and capable of supplying up to 150 gigalitres a year, which is approximately one third of Melbourne's annual water consumption.
CommIF has bought a 4.55 per cent stake in VDP from Suez, taking AMP Capital’s share of VDP to 9.75 per cent. CommIF took out a 5.2 per cent stake in September 2016. There are 22 years remaining until the end of the concession.
AMP Capital Head of Social Infrastructure and Aged Care Julie-Anne Mizzi said: “I’m delighted to have secured an additional stake in VDP on behalf of our clients in the Community Infrastructure Fund. It is a high-quality asset and an excellent investment for our portfolio. Following the acquisition, the fund now has 12 assets in total, worth more than $590 million.
“Demand for social infrastructure continues to go from strength to strength. This is due to its investment characteristics such as secure revenue from government-backed concessions and low correlation to traditional asset classes as well as the importance of the services the assets provide and their contribution to their local communities.”
AMP Capital was advised by Clayton Utz and Deloitte.
CommIF invests in high-yield, brownfield, social infrastructure PPP assets in Australia and New Zealand in sectors such as education, health, justice, defence, community housing, recreational facilities and transport. The fund provides investors with the opportunity for stable, long-term returns.
While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.