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CPPIB to Acquire 49.99% in Grupo Costanera

CPPIB PensionAccording to the press release, “the Canada Pension Plan Investment Board (CPPIB) announced today that it has entered into an agreement to acquire significant minority stakes in five major Chilean toll roads from the Atlantia Group. The agreement involves CPPIB acquiring a 49.99% interest in Grupo Costanera. CPPIB will commit an equity investment of 560 billion Chilean pesos or approximately C$ 1.14 billion for this transaction.

Andre Bourbonnais, Senior Vice-President, Private Investments for CPPIB, said: “The addition of these five major urban toll roads in Chile is an excellent opportunity to expand our infrastructure portfolio in a developing market. Chile’s strong economic growth prospects and its stable legal and regulatory framework make it an attractive country for investors like CPPIB. As a long-term investor, we seek infrastructure assets that will deliver stable returns over a prolonged period. We look forward to partnering with Atlantia, one of the world’s leading toll road operatiors.”

“With a long-term investment horizon, and the internal expertise to deploy capital in complicated transactions, CPPIB is one of only a few global institutional investors that is able to complete a transaction of this size and complexity,” said Mr. Bourbonnais.

Grupo Costanera is the largest urban toll road operator in Chile and owns a portfolio of five toll roads that span a 188-kilometre network. Four of the toll roads are located in Santiago metropolitan region including two major commuter motorways, Costanera Norte and Vespucio Sur. The fifth toll road is located on the central coast of Chile.

Atlantia Group will continue to own the remaining 50.01% interest in Grupo Costanera.”

Read more: CPPIB Press Release

Asian Sovereign Funds Not Slowing Down on Tech Investing

According to data from SWFI’s Sovereign Wealth Fund Transaction Database, Asian sovereign funds invested US$ 6.05 billion directly into companies and assets in the information technology sector from Jan 2017 to November 22, 2017. In a comparable time frame from Jan 2016 to November 22, 2016, this same group of Asian sovereign funds directly invested US$ 5.02 billion in the sector. These are direct investments, not fund commitments or manager allocations.

Asian sovereign funds such as GIC Private Limited, Temasek Holdings and the Korea Investment Corporation (KIC) have demonstrated bullish signals to the technology community over other sectors. GIC and Temasek have also been major investors in the private side of deals, funding a wide range of tech startups, while providing financial firepower in buyout transactions.

Some notable direct tech investments in 2017 by sovereign funds include Meituan-Dianping, SoundCloud, Nets A/S, Visma AS, Turn, Inc. and Vantiv.

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Future Fund Makes a Guardian Out of Former J.P. Morgan ANZ Chair

The Australian government has appointed Robert Priestley – current non-executive chair of J.P Morgan for Australia and New Zealand (ANZ) and a non-executive director of ASX – to serve on the Future Fund Board of Guardians for a five-year term from November 7, 2017. Priestley replaces former Morgan Stanley Australia chief executive Steven J. Harker.

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Associated British Ports Reboots Property Development Arm to Capitalize on Land Bank

Associated British Ports (ABP) – operator of 21 major ports throughout the United Kingdom – has announced a reboot of its ABP Property division, complete with a new team of specialists in commercial development and logistics led by Huw Turner, in order to identify and develop strategically significant locations in its 2,372 acre land bank.

ABP is owned in large part by a consortium of pensions and sovereign funds, including the Canada Pension Plan Investment Board (CPPIB) at 33.88% ownership, OMERS at 30%, Singapore’s GIC Ventures Pte Ltd at 20.00% ownership, and the Kuwait Investment Authority at 10.00% ownership. Large institutional investors such as sovereign funds, pensions, and endowments have slowly increased allocation towards infrastructure over the past six years as an alternative to equities and bonds, according to asset allocation data from SWFI.

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