09 Aug 2016
Caisse de dépôt et placement du Québec (CDPQ) entered into an agreement to acquire a 20% stake in Plenary Group Holdings (Plenary), which controls all of Plenary Group’s Australian operating businesses and infrastructure asset portfolio.
As part of this transaction, Plenary will issue new shares in a move to secure additional capital to fund its participation into future anticipated projects.
CDPQ is a long-term partner of Plenary, having invested more than A$200 million in seven Plenary-originated Australian projects since 2012, including the Victorian Comprehensive Cancer Centre. The A$1 billion centre-for-excellence for cancer research and treatment was delivered on time and on budget, and opened in June this year.
With CDPQ’s existing partnership in Australian assets and Plenary’s growing international footprint, the transaction provides strong value for both businesses.
“CDPQ has a close relationship with Plenary and has appreciated first-hand its robust business model and leading position in Australia, which has been a priority market for CDPQ over the past five years,” explained Macky Tall, Executive Vice-President, Infrastructure at CDPQ. “Given the scale of Australia’s infrastructure opportunities, this partnership will enable us to identify the best projects to generate stable and predictable returns over the long term.”
“Having our long-standing partner as a shareholder will provide us with the opportunity to further pursue large public infrastructure projects expected to be carried out over the coming years,” said John O’Rourke, Chairman of Plenary Group. “For us, CDPQ’s stake in Plenary is a strong vote of confidence in our business model of active asset management and long-term investment alongside our government partners.”
Plenary Group Holdings also holds an investment in Plenary’s activities in Canada and the United States through a minority equity investment in the Plenary North America business.
The transaction is subject to a number of government approvals and consents.
In addition to its investments alongside Plenary since 2012, CDPQ acquired in 2015 close to 25% of Transgrid, the electricity transmission network of the State of New South Wales, and close to 30% of the Port of Brisbane in 2013. CDPQ also announced, very recently, its acquisition of a 44% interest in Greenstone, a leading Australian insurance distributor, and holds an interest in I‑Med, Australia’s largest private medical imaging network. In 2015, Ivanhoé Cambridge, CDPQ’s real estate subsidiary, also acquired 25% of Liberty Place, a high-quality office building complex located in Sydney.
Last year, CDPQ opened an office in Australia that operates under its subsidiary, CDPQ Sydney, and has built a team of experienced professionals focusing on local investment opportunities.
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2015, it held C$248.0 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure and real estate. For more information, visit cdpq.com, follow on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
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