Canada Pension Plan Investment Board (CPPIB) plans to open its first Australia office, citing the opportunities in private infrastructure ownership. The pension wants to open the office by the end of the fiscal year 2017.
“Australia’s transparent, solid policy frameworks make it an attractive investment market for foreign investment capital and a long-term investor like CPPIB,” a spokeswoman for the pension said in an email to sister publication Secondaries Investor. Australia’s promotion of private infrastructure ownership is highly attractive to the pension giant as its portfolio seeks long-duration assets, she added.
CPPIB has C$7.9 billion ($6.1 billion; €5.5 billion) invested in Australia, according to a first quarter financial statement released on Thursday.
“We currently operate through Intoll, which provided support for CPPIB's investments in infrastructure and real estate,” the spokeswoman explained. “CPPIB acquired Intoll as part of the 2010 take-private acquisition of Intoll Group. This included a 30 percent interest in the 407 ETR in Toronto and a 25 percent interest in the Westlink M7 toll road in Sydney. Since then, Intoll has provided support for CPPIB's investments in infrastructure and real estate in Australia.”
Sydney will be CPPIB’s eighth global office and its third in Asia-Pacific after Hong Kong and Mumbai. The pension’s net assets increased by C$8.4 billion to C$287.3 billion as of 30 June, according to the financial statement. Its portfolio delivered a gross investment return of 1.53 percent for the first quarter of fiscal 2017.