Canada’s second-largest pension fund manager Caisse de dépôt et placement du Québec (CDPQ) along with four other investors have acquired 24.9 per cent stake in Australia’s largest public transport infrastructure project Sydney Metro for A$167 million ($113 million).
Names of the investors are MTR Corporation Limited, Marubeni Corporation, Plenary Group and CIMIC Group Limited.
The corpus will go into a public-private partnership (PPP) project and will be used for getting trains, systems, operations, besides maintenance of Sydney Metro, which includes both North West and City & Southwest lines.
The Metro North West Line opened in May 2019 with 13 metro stations in Sydney’s North West. It will go beyond Sydney city centre and beyond Bankstown by 2024, when Sydney will have 31 metro stations over a standalone 66-km metro railway line.
“This investment is perfectly aligned with our strategy to invest in high-quality infrastructure assets, alongside partners with a deep understanding of the market and vast operational expertise,” said Emmanuel Jaclot, executive vice-president and head of Infrastructure, CDPQ.
CDPQ is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. The firm held CA$326.7 billion in net assets as of June 30, 2019.
In August, it was said to be in exclusive talks to acquire Highway Concessions One, a road portfolio owned by infrastructure fund manager Global Infrastructure Partners (GIP) in India.
Before its investment in Sydney Metro, CDPQ, earlier this year, acquired a minority stake in Healthscope, a private hospital operator.
In 2016, CDPQ collaborated with the founders of Greenstone to acquire a 44% interest in this leading Australian insurance distributor.