AMP Capital is seeking to raise AUD300m (€204m) of new capital following a restructuring of an existing Australian and New Zealand infrastructure fund.
The AUD1bn fund, which was created in 1995 and owns Melbourne Airport, has been renamed and is now able to own controlling stakes in operating companies.
Now known as the AMP Capital Diversified infrastructure Trust (ADIT), the fund is expected to make a raft of new deals as a result of the changes made.
AMP Capital head of Australia and New Zealand, Michael Cummings, told IPE Real Estate that the capital would be deployed in the coming months.
He said: “We expect a strong deal flow in Australia for the remainder of 2016, particularly in the mid-market range, which is where we focus, as this is where we see the best relative value is for our investors.”
Cummings said the new structure puts the fund in a better positioned to attract new equity from investors and to improve its ability to deploy capital.
Cummings said: “Australian investors have been at the forefront of infrastructure investment for many years now, and we are continuing to see greater allocations to it.
“This has also been helped by a renewed focus on infrastructure development by Australia’s state and federal governments. The new-look ADIT is well placed to take advantage of myriad opportunities in the market for our investors.”
He said ADIT, whose investor base is made up of small to medium-sized Australian superannuation, has attracted global investors seeking exposure to Australia and New Zealand infrastructure.
Cummings said the fund would lift its exposure to sectors such as transport, ports and student housing in particular.
Since taking over the fund four years ago, Cummings has weeded out smaller non-core assets to build up a portfolio of core infrastructure assets valued at AUD1bn.
He said the fund was performing strongly. In the past 12 months it had delivered a return of 20.4%.
The main contribution, he said, came from Melbourne Airport, which represented half of the value of its portfolio and has been a beneficiary of rapid growth in tourist arrivals, especially from Asia.
Last August, AMP Capital and Infrastructure Capital Group (ICG) bought the 50-year lease of Port Hedland Airport in Western Australia for AUD205m.
Other assets in the diversified portfolio include Sydney University Village, Powerco New Zealand and a toll road, M5 Interlinks Road, in NSW.
