AMP Limited : AMP Capital invests in South Australian schools
05/17/2012| 03:27am US/Eastern
AMP Capital Investors Limited
ABN 59 001 777 591, AFSL 232497
Media Release 17 MAY 2012
Not for release or distribution in the US
AMP Capital invests in South Australian schools
AMP Capital has obtained South Australian Government approval
to acquire the South Australian Schools Public Private
Partnership (PPP) project on behalf of a number of its funds
and clients, including AMP Capital's Community Infrastructure
Fund and Core Infrastructure Fund.
AMP Capital Head of Infrastructure Australia and New Zealand
Paul Foster said the project has an enterprise value of $232
The project includes six newly constructed schools in
Adelaide, ranging from primary, middle, secondary, special
education schools and child care centres.
Mr Foster said this acquisition gives AMP Capital managed
funds and client's access to a high quality
PPP asset providing availability-based revenue backed by the
AAA rated South Australian Government.
"This transaction was sourced through a non-competitive,
direct negotiation process and is expected to deliver
attractive, double digit investment returns to our clients
across the project's remaining 27 year concession
period," he said.
Funds and clients managed by AMP Capital are acquiring 100
per cent of the equity in the project from Lend Lease and
Commonwealth Bank of Australia. In addition, AMP Capital is
becoming the asset manager of the project.
"This latest deal demonstrates that AMP Capital managed funds
and clients are well placed to benefit from the strong flow
of opportunities we are currently seeing within the social
infrastructure sector. It also reinforces AMP Capital's
strong, ongoing commitment to the Australian PPP market," he
Mr Foster said as governments grapple with a reduced tax
base, they are increasingly turning to the private sector to
fund the development and delivery of critical economic and
social infrastructure assets.
"In addition, a significant number of assets are now coming
onto the secondary market from developers looking to exit
assets following the construction phase and recycle capital
for new projects.
"This is creating good investment opportunities for our
clients, many of whom are superannuation funds who are the
natural long term owners of these assets," he said
Since acquiring management of the AMP Capital Community
Infrastructure Fund in September 2010, AMP Capital has
acquired four additional social infrastructure assets
bringing the total number of assets in the portfolio to
The AMP Capital Core Infrastructure Fund gives retail
investors access to a portfolio of Australian and global
unlisted and listed infrastructure assets which are
diversified by asset type, lifecycle and location. It also
gives investors direct access to projects that directly
benefit the community.
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