PRINT THIS PAGE

Canadian CPP Investment Board commits another Can$470m to infrastructure

The Toronto-based CPP Investment Board has committed €200m to the Macquarie European Infrastructure Fund, managed by a member of Australia's Macquarie Group. It also announced a £66m commitment to co-invest alongside the Macquarie European Infrastructure Fund in the Wales and West gas distribution network.

The Macquarie European Infrastructure Fund has now raised €750m from investors. The specialist fund has a €1bn target and will invest in European infrastructure assets including electricity and gas transmission and distribution networks, water and sewerage companies, rail, airports, communications infrastructure and toll roads.

The Wales & West gas distribution network is a regulated natural gas distribution business comprising approximately 34,000 km of gas distribution pipelines located in Wales and the South West of England.

David Denison, president and CEO of the CPP Investment Board, said, 'Infrastructure, which is a relatively new asset class for us, has higher expected returns than bonds and is a good hedge against inflation.'

'This is the type of regulated asset we are ideally looking for and are disappointed that there are so few domestic opportunities that meet our investment criteria,' Denison continued.

Including these new commitments, the CPP Investment Board will have total infrastructure commitments of Can$670m. The CPP Investment Board has allocated up to ten per cent of the CPP reserve fund for infrastructure assets.

Last year the CPP Investment Board committed Can$200m to Macquarie Essential Assets Partnership, which invests in infrastructure assets in Canada and the United States.

The CPP Investment Board invests in capital markets the funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested in equities, real estate and infrastructure.

Copyright © 2005 AltAssets