Hastings, SuMi Trust raise €170m for debt

The Australian fund manager and Japanese trust bank have teamed up to target infrastructure debt opportunities in Europe.

Melbourne-based fund manager Hastings Funds Management (Hastings) has formed a partnership with Japan’s Sumitomo Mitsui Trust Bank (SuMi Trust) to invest in European infrastructure debt.

In tandem with the announcement, the firms also revealed they have reached first close on two debt funds which have raised a total of JPY25 billion (€170 million; $211 million). One will target junior European infrastructure debt and the other senior European debt.

“SuMi Trust is Hastings’ first Japanese client,” said Hastings chief executive Andrew Day in a statement. “We are very pleased to have established an investment relationship with such a major and well respected partner in the Japanese market.

The partnership forms part of Hastings’ strategy to develop its relationships in Asia. It recently signed a strategic partnership agreement with Hong Kong-based China Merchants, the Chinese state-owned corporation. In April, the two firms joined forces to buy the 98-year lease to operate the Port of Newcastle, the world’s biggest coal export port, for A$1.75 billion (€1.2 billion; $1.45 billion).

Furthermore, in March Hastings struck an agreement to launch an Indian infrastructure fund with conglomerate Aditya Birla.

In the statement, Hastings said it has won debt mandates in Asia, North America and Europe this year and, over the last two years, has increased the size of its infrastructure debt business by nearly A$2 billion.

Targeting infrastructure equity and debt, Hastings currently manages A$9.2 billion across various funds and mandates and has 70 institutional investors in its client base.

Based in Tokyo, SuMi Trust is the largest trust bank in Japan and has almost $700 billion in assets under management.