REAL ESTATE - The Ontario Teachers Pension Plan has acquired four marine container terminals for US$2.4bn (€1.8bn). The acquisition, from Hong Kong’s Orient Overseas (International), comprises New York’s Staten Island, a terminal in New Jersey and two Canadian assets.
Subject to regulatory approval, the US$84bn fund will add its recent acquisition to an infrastructure portfolio that already includes the Express oil pipeline and a UK wastewater group.
Spokeswoman Deborah Allan said the fund would continue to scout international infrastructure assets.
"There aren’t enough infrastructure assets in Canada for us to invest only domestically," she said, adding that the fund was looking to increase its infrastructure holding "asset-by-asset".
"We’re not looking only for certain kinds of infrastructure assets," she added.
The pension fund believes the recent acquisition offers stable, well-managed asset with long-term cashflow and growth potential. Combined annual sales for the four terminals total US$500m.
"It isn’t that they need anything doing to them but this is a growth area," said Allan. "We’re seeing more movement of goods and anything we can do to encourage more business and increase capacity, we’ll do."
Inflation-sensitive investments make up around 32% of the fund. Infrastructure makes up around 5% of this number.