QIC has acquired a 50% stake in Vector Metering, a NZ$2.5bn (€1.4bn) smart-metering business operating across Australia and New Zealand.

QIC bought the stake on behalf of the funds that it managed. The investment is the first asset for the Australian state’s investment agency’s new infrastructure fund. 

Vector Metering’s parent Vector will retain a 50% interest in the metering business.

Vector chose QIC as its preferred joint venture partner last December. Others competing for the business were Singapore’s Keppel Infrastructure Trust and Hong Kong’s CK Infrastructure.

At the time, Vector said the deal was expected to result in gross transaction proceeds of around NZ$1.74bn, adding that Vector Metering was held in its books at NZ$650m.

QIC’s head of infrastructure, Ross Israel said: “With this investment, QIC Infrastructure’s global investments supporting the transition to a low-carbon economy have grown to A$5bn. Our energy platform assets also aim to invest more than A$15bn in the energy transition over the next five years.”

Vector Metering owns and/or manages over 2.3m meters across the electricity and gas markets in Australia and New Zealand. It is the leading provider of smart meters in New Zealand.

Its significant scale would support future growth and the extensive roll-out of smart meters in Australia, said Israel, adding that the latter opportunity represented further growth and investment for the company.

Patrick Mulholland, senior principal of infrastructure at QIC, said: “Both Vector and QIC bring complementary skills to the business that will support it financially and strategically to grow and enable the energy transition.”

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