M&A
NH Investment beats Korean rival in a bold bet on $400 mn Aussie-NZ infra portfolio
By Aug 06, 2020 (Gmt+09:00)
2
Min read
Most Read
S.Korea's LS Materials set to boost earnings ahead of IPO process
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
Macquarie eyes its 1st Korean data center valued around $722 mn
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
Galaxy Ring, new foldables set to steal the show at Samsung Unpacked Paris
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
SK Inc. in talks to sell Pharmteco’s US CDMO plant to Novo Nordisk
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
POSCO gears up for carbon-free steelmaking with hydrogen
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
A consortium led by NH Investment & Securities Co. Ltd. has been named as a preferred buyer for infrastructure assets worth $400 million in Australia and New Zealand, beating the rival bid from another South Korean brokerage firm Hana Financial Investment Co. Ltd.
New Zealand-based Morrison & Co. offered to sell assets held by its first Public Infrastructure Partnership Fund consisting of schools, prison facilities, residence halls and convention centers in Australia and New Zealand, according to sources with knowledge of the matter on August 6. It was first reported by the Seoul Economic Daily early this week.
NH Investment formed a consortium with KDB Infrastructure Investments Asset Management Co. Ltd., or KIAMCO, to bid for the assets. The decision to invest in infrastructure assets came as part of an effort to diversify away from office buildings that suffer from falling demand in the wake of the coronavirus spread.
Hana Financial Investment teamed up with Korean Teachers’ Credit Union and Seoul-based Pine Tree Investment & Management Co. Ltd for the bid, but NH Investment ultimately landed the deal.
Assets included in the vehicle are school buildings, dormitories, convention centers, and prison facilities: a 100% stake in Hobsonville Point Secondary School, 100% of Auckland Prison in New Zealand, and 100% of Bendigo Hospital key health worker accommodation, as well as 100% of NZ Schools I & II. It also holds a 50% stake in the University of Wollongong student accommodation and a 49.9% stake in the Melbourne Convention Center.
Most of them are leased to central and provincial governments with remaining lease terms of 25 to 34 years.
The deal closing is subject to approval by Australian and New Zealand governments. The approval process is expected to be smooth sailing since NH consortium has provided a solid case for acquiring the infrastructure assets.
Earlier, NH Investment has agreed to buy a 6% stake in the natural gas pipeline business managed by Abu Dhabi National Oil Company (ADNOC) as a member of a six-strong group that acquired a 49% stake in the Middle Eastern asset for a combined $10.1 billion, as Korean Investors reported earlier.
Write to Seonpyo Hong at rickey@hankyung.com
New Zealand-based Morrison & Co. offered to sell assets held by its first Public Infrastructure Partnership Fund consisting of schools, prison facilities, residence halls and convention centers in Australia and New Zealand, according to sources with knowledge of the matter on August 6. It was first reported by the Seoul Economic Daily early this week.
NH Investment formed a consortium with KDB Infrastructure Investments Asset Management Co. Ltd., or KIAMCO, to bid for the assets. The decision to invest in infrastructure assets came as part of an effort to diversify away from office buildings that suffer from falling demand in the wake of the coronavirus spread.
Hana Financial Investment teamed up with Korean Teachers’ Credit Union and Seoul-based Pine Tree Investment & Management Co. Ltd for the bid, but NH Investment ultimately landed the deal.
Assets included in the vehicle are school buildings, dormitories, convention centers, and prison facilities: a 100% stake in Hobsonville Point Secondary School, 100% of Auckland Prison in New Zealand, and 100% of Bendigo Hospital key health worker accommodation, as well as 100% of NZ Schools I & II. It also holds a 50% stake in the University of Wollongong student accommodation and a 49.9% stake in the Melbourne Convention Center.
Most of them are leased to central and provincial governments with remaining lease terms of 25 to 34 years.
The deal closing is subject to approval by Australian and New Zealand governments. The approval process is expected to be smooth sailing since NH consortium has provided a solid case for acquiring the infrastructure assets.
Earlier, NH Investment has agreed to buy a 6% stake in the natural gas pipeline business managed by Abu Dhabi National Oil Company (ADNOC) as a member of a six-strong group that acquired a 49% stake in the Middle Eastern asset for a combined $10.1 billion, as Korean Investors reported earlier.
Write to Seonpyo Hong at rickey@hankyung.com
Danbee Lee edited this article
More to Read
-
-
Pension fundsKorea’s military fund taps ex-president of Woori Financial as CIO
Jun 28, 2024 (Gmt+09:00)
-
-
Pension fundsKorea's NPS CIO talks with GPIF, GIC execs on asset allocation
Jun 24, 2024 (Gmt+09:00)
-
Foreign exchangeKorea FX authorities, NPS raise currency swap limit to $50 bn
Jun 21, 2024 (Gmt+09:00)
Comment 0
LOG IN