AMP Capital invests in Sydney road widening

The Australian fund manager has committed an additional A$22m to Interlink Roads, owner and operator of Sydney’s M5 South West Motorway. AMP has been an investor in Interlink since 1998 and has a 15.4% stake.

AMP Capital has invested an additional A$22.0 million (€17.7 million; $22.1 million) in Interlink Roads as part of a A$400 million transaction to widen the M5 South West Motorway, a key route for the growing population of south-west Sydney that is also seen as an important economic driver for New South Wales (NSW). 

With financial close now having been reached on the project, construction will get underway. The build phase is due to complete by the end of 2014.

AMP has been a strategic partner in Interlink Roads, the owner and operator of the motorway, since 1998 and manages a 15.4 percent stake in the firm 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,” said Paul Foster, AMP Capital head of infrastructure Australia, in a statement.

It is anticipated that investor returns will come predominantly from an extension of Interlink Roads’ toll concession period to December 2026.

“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,” added Foster.