TIF’s trustee The Private Capital Group (TPCG) said the move is part of a “broader investment strategy” which it would oversee to create a diverse portfolio of Australian and international infrastructure assets.
TPCG chairman Bob Lette said – as TIF’s trustee – it was attracted to Porterbrook because it was an established “quality infrastructure asset” that could deliver a “solid rate of return”.
“TIF already owns energy and transportation infrastructure assets in the United States, but Porterbrook presented the opportunity to secure our first European equity investment,” Mr Lette said.
“In the process, this allows us to further diversify our portfolio across new sectors and geographies to deliver consistent, above-benchmark investor returns,” he said.
“Initiated by TIF manager Hastings Funds Management, this deal saw like-minded, long-term infrastructure investors with similar strategic approaches unite,” Mr Lette said.
TPCG said the Porterbrook purchase comes as TIF targets additions of quality infrastructure assets.
“Earlier this year, TIF and consortium partner China Merchants Group won the $1.75 billion New South Wales Government auction for the 99-year lease of Port of Newcastle,” a statement from TPCG said.
“It has returned more than 16 per cent per annum during the past 10 years. TIF has been managed by Hastings Funds Management since July 2000,” TPCG said.
Porterbrook owns and manages approximately 5,900 passenger and freight rolling stock, which represents about a third of Britain’s passenger rolling stock fleet.
It leases this stock to train and freight operating companies in the UK under long-term lease agreements.
