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.
“Demand for social infrastructure continues to go from strength to strength" - Julie-Anne Mizzi
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.