Canada Pension Plan Investment Board, Toronto, on Monday said it will take a 25% ownership stake in a tunnel tollway to be built northwest of Sydney, for A$525 million (US$411 million).
The board, which oversees the investment of the C$234.4 billion (US$178 billion) Canada Pension Plan, Ottawa, is part of a consortium investing in the tunnel project with money manager Queensland Investment Corp. and toll-road developer Transurban Group, said Linda Sims, CPPIB spokeswoman.
Construction of the NorthConnex tunnel motorway will begin early this year and is expected to be completed in 2019. The A$2.9 billion project will be funded by the three partners and by the New South Wales and Australian governments.
CPPIB already has a 25% stake in the Westlink M7 toll road in Sydney. As of Sept. 30, the board had C$7.1 billion in Australian real estate, infrastructure, public equities, real estate investment funds and direct investments. Its worldwide infrastructure investments totaled C$12.6 billion as of that same date.