Ontario Teachers in $2.6bn container port deal

Led by its in-house direct investment team, the Canadian pension has agreed to purchase four North American container terminals from a Hong Kong seller.

Ontario Teachers’ Pension Plan has announced plans to buy four marine container terminals from Orient Overseas (International) of Hong Kong for approximately $2.6 billion (€2 billion).

The deal was led by Jim Leech, senior vice president of Teachers’ Private Capital, the private investment arm of the pension plan’s unique direct investment programme.

Teacher’s Private Capital already has a $6.5 billion portfolio of infrastructure and timber assets, according to the pension.

This most recent deal includes the transfer of container terminals in Staten Island, New York; Bayonne, New Jersey; and Vancouver, British Columbia. Combined annual sales of the operations total approximately $500 million.

Leech said in a statement that the deal is “well priced from an investment value perspective and offers the long-term cash flow we look for as a pension plan”.

Ontario Teachers’ first invested in the infrastructure sector in 2002. Investments include Express Pipeline System, Scotia Gas Networks, InterGen and Northumbrian Water Group.

The Ontario Teachers’ Pension Plan has roughly $84 billion in assets under management. The combined value of the plan’s infrastructure and timber, and private equity assets is approximately $12 billion, according to the pension.