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Abu Dhabi SWF buys stake in Australian port

ADIA took a 19 percent stake in the port.

November 11, 2010 10:15 by

Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, bought a minority stake in Australia’s Port of Brisbane in a deal worth A$2.1 billion, ($2.11 billion) the Queensland government said in a statement.

ADIA was part of the Q Port Holdings consortium that included major stakeholders Global Infrastructure Partners, Industry Funds Management (IFM) and funds managed by QIC Limited that will take ownership of the port under a 99-year lease.

ADIA, through its wholly-owned subsidiary Tawreed Investments, took a 19 percent stake in the port while the remaining three funds hold a 27 percent stake each.

“This is a quality group of investors with the skill and balance sheet to ensure the future development of the port. It includes leading players in port and airport operations and two of Australia’s largest superannuation fund managers,” Andrew Fraser, treasurer and minister for employment & economic development, Queensland said in the statement.

Collectively, the consortium has interests in port terminals across eight countries and two of them, IFM and QIC are shareholders in the Brisbane Airport.

ADIA, which has assets of $500 billion to $700 billion, holds stakes in London’s Gatwick Airport and a long-term lease on Chicago’s parking meters, among other high profile investments globally.

In March this year, ADIA published its first annual review providing details of its 2009 global portfolio that includes investments in more than two dozen asset classes and sub-categories.

ADIA’s funds returned 6.5 percent on an annualised basis, over a 20-year period as of December 31, 2009. On the same basis, the fund returned 8 percent over a 30-year period, it said in the review.

At least 46 percent of the fund’s portfolio in 2009 was allocated to equities, with a minimum of 35 percent in developed markets and at least 10 percent in emerging markets.

(Reporting by Stanley Carvalho; Editing by Hans Peters)

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