A consortium composed of Australia's Future Fund, Ontario Municipal Employees Retirement System, Brisbane-based money manager QIC and New York-based private equity firm Global Infrastructure Partners will pay more than A$9.7 billion ($7.3 billion) to lease the Port of Melbourne for 50 years.
China Investment Corp., as a client of one of the money managers, will obtain a roughly 20% interest in the port, according to two sources who declined to be named,
That will put the $810 billion Beijing-based sovereign wealth fund's stake in the same neighborhood as those of the A$122.8 billion Future Fund and C$77 billion ($58.3 billion) Toronto-based OMERS.
A CIC spokesman couldn't be reached immediately for comment.
The transaction is expected to close on Oct. 31, said a news release Monday by the four-member Lonsdale Consortium.
A separate news release by Melbourne's Victoria state government cited the deal as a successful example of the commonwealth's asset recycling program, noting that 10% of the proceeds will be invested in regional and rural infrastructure projects.
A spokesman for the Future Fund declined to say how much the Melbourne-based sovereign wealth fund would contribute to the A$9.7 billion total. Spokesmen for the other three consortium partners were not immediately available to comment.
Ross Israel, QIC's global infrastructure head, said the consortium has developed “a long-term vision and business plan” that, in conjunction with other stakeholders, will “maintain, invest and grow Port of Melbourne into the future,” according to the consortium's release.
