Perpetual's Diversified Infrastructure Fund invests in Northern Territory Airports
20 Nov 2003
Perpetual's Diversified Infrastructure Fund (the Fund) has secured its first investment, being a 14.55% equity interest in Airport Development Group Pty Ltd (ADG), which owns and operates three Northern Territory airports.
The acquisition involves the purchase of a direct interest in airports located at Darwin, Alice Springs and Tennant Creek (NT Airports). Darwin International Airport is one of Australia's major international and domestic gateways, and is its closest airport to the key Asian market.
NT Airports was originally sold to ADG by the Federal Government via a 99-year lease in June 1998, as part of its Airports Privatisation Program. Perpetual's investment was acquired from Laing Investments Limited, pursuant to a negotiated sale process, following a strategic decision by its parent, John Laing plc to concentrate its investment activities in its core markets of the United Kingdom and Europe.
Mr Brett Lazarides, Head of Infrastructure at Perpetual, said that this investment offers both an increasing cash yield profile plus firm prospects for attractive capital growth over the medium term.
"Australia's airports generate secure long-term revenue streams. They have strong market positions and hence lower competitive pressure than many other businesses, together with significant potential for growth in their non-aeronautical revenue base.
"Airports are a preferred asset sector for the Fund. Australia's airports legislation has effectively established a network of state based airport monopolies, where potential new entrants face extremely high barriers to entry. Further, the 99-year ownership concession is a significant attribute that positively differentiates this sector. It is also a key factor in mitigating the shorter-term impacts of regional or global events that can affect the airline industry," said Mr Lazarides.
Perpetual's Diversified Infrastructure Fund was launched in October 2003. Its objective is to provide wholesale investors with consistent returns comprising both stable, long-term capital growth and increasing cash distributions, pursuant to a broad-based diversification strategy. The fund will primarily invest in equity securities issued by unlisted Australian infrastructure companies and projects
The Fund remains open to investor applications until June 2004.