Dutch pension fund manager PGGM and Olmar have acquired the first asset for a newly created European port infrastructure investment venture.
PGGM said it will hold a controlling interest in the new joint venture with the founders of logistic service provider Olmar holding the remaining interest.
For the maiden deal, the partnership has invested an undisclosed amount to buy a storage and transhipment facility of the seaport near the Finnish city of Pori.
PGGM and Olmar said they plan to be active in multiple European ports by investing in the supply chain of raw material companies.
Martijn Snijder, a managing partner at Olmar, said: “This platform of Olmar and PGGM has been set up for the long term and enables us to use our experience for the strategic customers. It also allows PGGM to generate a sustainable return on investment.”
Irina Frolova, head of Infrastructure investments at PGGM, said: “The availability of long-term capital of our customers, including Pensioenfonds Zorg en Welzijn, allows us to build a profitable portfolio of a logistic infrastructure for raw materials that are important to Europe. These activities involve a constant flow of goods, the processing of which generates a stable cash flow.
In the next few years, the partnership intends to invest in facilities that will contribute to strengthening the economic structure of Europe, said Frolova.
“The investment in the port of Pori is in line with our fund’s long-term strategy to build a diversified portfolio that is consistent with the sustainability timetable required by the Paris Agreement.”
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