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Future Fund Bids for Listed Australian Infrastructure Fund

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According to the press release, “The Future Fund Board of Guardians confirms that it has entered into a Memorandum of Understanding (MOU) with the Australian Infrastructure Fund (AIX) to acquire all of AIX’s portfolio assets as part of an agreed transaction.

David Neal, Chief Investment Officer at the Future Fund said: “Australian infrastructure assets are attractive to the Future Fund because of their strong correlation with Australian economic growth, inflation protection and relative high levels of earnings certainty. These characteristics provide a strong fit with the Fund’s mandate to achieve high, risk adjusted returns over the long term.

“Over the last five years, the Fund has been building its Tangible Assets program. The infrastructure program is part of that and is now valued at over $4.3 billion or 5.6% of the portfolio. We continue to seek opportunities to increase our exposure to quality Australian and international infrastructure assets.”

The proposal is consistent with the Future Fund’s long stated strategy, and will further enhance the Fund’s direct exposure to quality domestic infrastructure assets. The Future Fund already directly holds 16.8% of Australia Pacific Airports Corporation. The Future Fund has given careful consideration to its proposal. The MOU provides exclusivity and sets out the process to close the transaction, including the requirement for a period of confirmatory due diligence and final approval by the Future Fund Board of Guardians.

The proposal to acquire AIX’s assets for $2 billion represents a 10% premium to the AIX Directors’ published valuation of its assets as at 30 June 2012 and provides AIX securityholders with certainty of value.

Any transaction would require the support of the Board of Directors of Australian Infrastructure Fund Limited and the sub-committee of independent directors of Hastings Funds Management Limited, as well as the approval of AIX securityholders.”

Read more: Press Release

Former FSDEA Chairman Arrested in Angola

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Jose Filomeno de Sousa dos Santos, the son of Angola’s former president and former chairman of the country’s sovereign wealth fund, has been placed under arrest, according to the state prosecutor’s office. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Keppel Land China Acquires Stake in Nanjing Jinsheng Real Estate Development

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On September 20, 2018, Keppel Land China, a subsidiary of Singapore-based Keppel Corporation, purchased a 40% stake in Nanjing Jinsheng Real Estate Development Co, a subsidiary of Gemdale Corporation. Keppel Land China did the deal through an entity called Eternal. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Korea NPS Co-Invested in Delaware Basin Assets with Morgan Stanley

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The Delaware Basin is a geologic depositional and structural basin in West Texas and southern New Mexico. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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