3 Large Sovereign Fund Cross-Border Bids Shaping the Industry


Bidders are quietly lining up as Australia’s New South Wales (NSW) government pushes forward on a plan selling leases on select infrastructure. NSW Premier Michael “Mike” Baird won a late March election, giving him a mandate to move forward with the lease sales. Essentially, the state government seeks to lease A$ 20 billion worth of infrastructure which includes nearly 50% of its electricity network, port leases and a water desalinization plant. The sales process has been in the works. In 2014, NSW government hired Deutsche Bank and UBS Group AG as financial advisers regarding the sale of a 99-year lease to operate Transgrid, Australia’s biggest electricity transmission network. Other distribution network leases for sale are Ausgrid (50.4%) and Endeavour Energy (50.4%).

The cash from the lease sales would then be used to construct new roads, railways, hospitals and schools. The Abu Dhabi Investment Authority (ADIA) has joined Hastings Funds Management, Spark Infrastructure Group, Wren House Infrastructure (a sovereign wealth enterprise of the Kuwait Investment Authority) and Canada’s Caisse de Depot et Placement du Quebec (CDPQ) in a bid for the lease on NSW electricity assets. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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