AMP Capital

AMP Capital Investors is acquiring the RBS Social Infrastructure Trust (the Fund), an Australian Public Private Partnership (PPP) infrastructure fund, and has significant plans to grow the portfolio.

The $80 million portfolio will be known as the AMP Capital Community Infrastructure Fund.

Following the approval of the transaction at a unitholder meeting today, AMP Capital will become the Responsible Entity (RE) taking over the investment and asset management of the Fund.

AMP Capital Global Head of Infrastructure Phil Garling said the acquisition further establishes AMP Capital's capability in the growing PPP infrastructure asset class.

"Our goal is to establish the AMP Capital Community Infrastructure Fund as the pre-eminent PPP infrastructure investment fund in Australia. This means we will continue to acquire additional infrastructure assets in the portfolio, adding value for investors through diversification," Mr Garling said.

"In addition, we are finding that some investors are seeking protection against the possibility of a high inflation environment in the future. We believe investors will be attracted to the strengths of the Fund, given the long-term CPI-linked cash flows generated by its assets and the overall return profile.

"We plan to raise additional equity and continue to seek strong, stable, PPP infrastructure assets to acquire, to complement the existing portfolio. AMP Capital's flagship infrastructure fund, the Infrastructure Equity Fund (IEF), will also take a cornerstone investment in the Fund, reaffirming our commitment to the Fund and the sector."

The four high quality assets in the portfolio deliver real benefits to their communities - Schools II (NSW), Emergency Alerting System (Vic), Southbank Institute (Qld) and Darwin Convention Centre (NT).

"As one of the world's oldest and most established infrastructure investors, this acquisition further expands AMP Capital's infrastructure business and capability, which is part of our growth strategy," Mr Garling concluded.

RBS Head of Asia Pacific Non-Core Portfolio & Banking Alun Lewis said: "AMP Capital has a long established track record in funds management and infrastructure investment and RBS is pleased AMP Capital has acquired the Fund, providing stability for investors."

"The sale of the Fund is part of our continued progress towards our strategic plan of exiting our non-core activities. RBS remains committed to the infrastructure sector in Australia through our advisory and financing areas. We are currently involved in five PPPs in the market, and we look forward to partnering with AMP Capital on transactions in the future," Mr Lewis said.

AMP Capital has significant experience in PPP infrastructure and has made a number of investments in the area. It currently manages investments across healthcare, university student accommodation, prisons, hospital car parking, aged care, water and the rail sector. It also has direct experience investing in a large portfolio of UK PPP assets.