Pension Insurance Corporation (PIC) has invested £50m (€60.4m) in Peel Ports – its second investment in the UK port group, following a £33m contribution in 2023.
The 12-year financing facility provided by specialist insurer of defined benefit pension funds is intended to provide Peel Ports with the additional flexibility to fund large infrastructure investments.
Peel Ports has been investing in sustainable developments across its portfolio, including the installation of two £25m ship-to-shore cranes at the Port of Greenock, a £30m roll-on-roll-off berth facility at the Port of London Medway and the construction of the £25m Alexandra warehouse complex at the Port of Liverpool.
Vladan Martinovic, senior debt origination manager at PIC, said: “The diversity of cargo transited, their varied customer base, long-term customer contracts and ability to adapt their product offering makes the UK ports sector resilient through business cycles and therefore an attractive asset for a buy-to-hold investor like PIC.
“Regular, secure, long-term cashflows are a good match for PIC’s pension payments stretching out decades into the future. We are delighted to be able to support Peel Ports and complete an additional financing that meets their treasury needs.”
Peel Group holds 37.6% of Peel Ports, AustralianSuper holds 32.4%, and APG and Global Infrastructure Partners jointly own 30% through their entity, Lemon 2021.
To read the latest IPE Real Assets magazine click here.
