AMP Capital acquires Australian schools project for $232m

Investing via its Community Infrastructure Fund and Core Infrastructure Fund, AMP's new project consists of six newly built schools in Adelaide, including from primary, middle, secondary, special education schools and childcare centers.

"This transaction was sourced through a non-competitive, direct negotiation process and is expected to deliver attractive, double digit investment returns to our clients across the project's remaining 27-year concession period," said Paul Foster, AMP's head of Infrastructure for Australia and New Zealand.

AMP will hold 100% of the project, which it is purchasing from Lend Lease and Commonwealth Bank of Australia.

There is currently a strong flow of opportunities within the Australian social infrastructure sector. As local governments get to grips with reduced tax income, they are progressively seeking more investment from the private sector to fund the development of badly-needed assets.

Last November, China Investment Corp. (CIC) pledged to commit funds to improving infrastructure in developed countries. CIC took a 19.9% stake in Goodman Group in 2009, having committed A$500 million ($460 million) to an A$1.8 billion bailout package for the troubled Australian industrial property trust.

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• Topics
• Infrastructure
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• Australasia
• Australia
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