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QIC-owned Queensland Motorways Buys CLEM7 Tunnel

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The Queensland Investment Corporation (QIC), through its global infrastructure arm, bested competitors in a bid for Brisbane’s Clem Jones tunnel (CLEM7). The A$ 70.3 billion QIC purchased the toll road for AS 618 million through its toll road business Queensland Motorways. The road was built at an original cost of A$ 3 billion.

The impending acquisition of CLEM7 will bolster the toll road portfolio of Queensland Motorways. According to a statement, “The addition of the CLEM7 tunnel will further expand and diversify the growing Queensland Motorways asset portfolio of toll roads, which currently includes the Gateway, Gateway Extension and Logan motorways, and will include the Go Between Bridge by late 2013, followed by Legacy Way Tunnel on construction completion in mid-2015.”

The original intent of CLEM7 was to help facilitate traffic between the suburbs north and south of the Brisbane River; however, traffic projections proved to be inflated, and Brisbane’s first private toll-way sunk under its own borrowing.

The acquisition can be seen as a bittersweet result for the northeast Australian state. On the one hand, it picked up a recurring revenue stream for pennies on the dollar. On the other hand, private infrastructure investors might think twice about investing in Australia’s recently proposed infrastructure bonds.

Infrastructure bonds are being suggested as a way to help augment Australia’s limited resources dedicated to infrastructure investment. But a recent slew of bankruptcies including Lane Clove Tunnel in Sydney are undoubtedly concerning.

HKMA and TRS Participates in Investment in Kakao Mobility

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Private equity firm TPG led a group of investors to acquire a minority ownership stake in Kakao Mobility Corporation, a South Korean taxi hailing service provider. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Meraas Holding Names Former KIO Executive as CEO

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Osama Al-Ayoub, the former CEO and President of the Kuwait Investment Office (KIO), was hired by property firm Meraas Holding to be its chief executive officer. KIO is a London-based unit of the Kuwait Investment Authority (KIA). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Mumtalakat Contemplates Investing in SoftBank Vision Fund

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Bahrain-based Mumtalakat Holdings is interested in joining a chorus of sovereign funds committing capital to Japan-based SoftBank Group’s Vision Fund. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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