AMP Capital has invested an additional $22 million in Interlink Roads, as part of the transaction announced yesterday to widen the M5 South West Motorway in Sydney.
Construction of the $400 million project can now commence as financing documents have been executed and financial close has been reached on the transaction.
It is due for completion in December 2014.
AMP Capital manages a 15.4 per cent stake in Interlink Roads, the owner and operator of the M5 South West Motorway since 1998, on behalf of its funds and clients.
"AMP Capital's specialist infrastructure team have actively shaped the M5 South West Motorway widening project and have co-led negotiations with the NSW government on behalf of Interlink's shareholders," AMP Capital head of infrastructure in Australia Paul Foster said.
"Participation in the M5 South West Motorway widening project is in line with our investment strategy of acquiring and developing core, high-quality infrastructure assets to generate sustainable and long-term returns for our investors."
The project is expected to deliver investor returns predominately through an extension of Interlink Roads' toll concession period to December 2026, Foster said.
"The stable, long duration cash flows produced by infrastructure assets such as the M5 South West Motorway are a particularly good match with the investment objectives of our superannuation fund clients."
