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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.
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This article has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.