Hastings, First State Super buy Australian state land registry

The acquisition of Land & Property Information (LPI) will be made through Australian Registry Investments (ARI), a special purpose vehicle 20% owned by Royal Bank of Scotland Group's pension fund, which is managed by Hastings. ARI plans to update LPI’s information technology systems to improve its service quality in light of recent administrative mistakes at the agency.

Proceeds from the deal will be used for infrastructure projects in NSW, with A$1 billion earmarked for improvements to several stadiums in Sydney and the rest reserved for future projects. The government has created a new regulator to ensure the security of property rights and customer data following the sale.

“This is an industry on the cusp of huge technological advances, and today we have partnered with some of Australia’s most reputable investors who will make sure the people of NSW get the benefit of those advances,” said NSW Treasurer Dominic Perrottet in a statement. “Combined with the tight regulatory framework we have established, the investment, innovation and experience ARI will bring mean citizens can expect a better experience.”

The LPI deal follows a familiar pattern in Australia of state governments selling completed infrastructure assets and recycling the revenue into new infrastructure projects. Last year a consortium including IFM Investors and AustralianSuper paid A$16.2 billion for a 99-year lease of NSW electricity transmission network Ausgrid, while QIC led a consortium to acquire a 50-year lease at the Port of Melbourne for A$9.7 billion.

Hastings played a major role in several of these deals, such as the 2015 purchase of Transgrid, a separate electricity transmission network in NSW, for A$10.3 billion. The firm also joined China Merchants Group in securing a 98-year lease on the Port of Newcastle in 2014 for A$1.75 billion.

Sentiment regarding these opportunities among investors has been mixed. While the assets are considered attractive due to their established performance record and low risk, the rarity with which they come up for auction means that prices tend to be too high for all but the largest players.

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• Topics
• Australasia
• Infrastructure
• Infrastructure
• Buyouts
• Australia
• Hastings Funds Management