Macquarie European Infrastructure Fund Agrees to Acquire 49% of Netherlands Distribution Network

03 June 2005

LONDON, 2 June 2005 - The Macquarie European Infrastructure Fund today announced it has agreed to acquire 49% of NRE Holding N.V. (NRE), a gas and electricity distribution network located in the Netherlands.

NRE owns the gas and electricity networks in and around the city of Eindhoven and is the fifth largest gas and electricity network operator in the Netherlands. In addition to its regulated activities, NRE generates non-regulated earnings from a number of associated activities including metering and third party services.

The acquisition will follow the sale of 100% of NRE’s supply business and a refinancing of NRE’s remaining network business. The Macquarie European Infrastructure Fund will invest approximately €80 million for the 49% interest in NRE. The acquisition is conditional upon obtaining approval from the Dutch Ministry of Economic Affairs.

The Macquarie European Infrastructure Fund makes long-term investments in utilities and other infrastructure assets in European OECD countries. Mr Jim Craig, Managing Director of the Fund, said, “We are delighted to make this investment in NRE, and we look forward to supporting our co-shareholders as they continue to deliver important services to the region. NRE has chosen to restructure its business and unbundle its operations ahead of other companies in the market and we look forward to supporting the existing management in maintaining a market-leading position.”

“NRE is a regulated essential-service business in a stable and developed economy. It is an excellent business with characteristics that are well matched to the Fund’s criteria and suit the needs of our investors - which are pension funds and other investors with a long-term outlook,” he said.

The Macquarie European Infrastructure Fund aims to deliver sustainable cash yields and moderate capital growth from a diversified portfolio of quality infrastructure assets, such as electricity and gas transmission and distribution networks, water and sewerage companies, rail, airports, communications infrastructure, toll roads and renewable energy assets.

NRE is the sixth investment made by the Fund since its launch in April 2004. The Fund’s portfolio includes:

• a 50.1% interest in UK utility South East Water
• 31.0% of Wales & West Utilities, a UK gas distribution network
• 100% of Energy Power Resources Limited, which owns and manages the UK’s largest portfolio of biomass fuelled renewable energy assets
• 100% of Arlanda Express, the high speed rail service linking Sweden’s Arlanda Airport to Stockholm city centre
• a 10% interest in Brussels International Airport (within a Macquarie consortium that owns 70% of the airport).

The Fund has attracted leading institutional investors such as the Netherlands’ pension fund ABP, one of the world’s largest pension plans, Canada Pension Plan Investment Board, HSH Nordbank of Germany, Generali, Italy’s largest insurer, Dexia Credit Local of France and Caisse de dépôt et placement du Québec of Canada, among others. The Fund recently announced that is has achieved commitments of over €1.2bn and has raised its final target to €1.5bn.

Mr Craig says that being part of the family of Macquarie infrastructure funds provides a distinct advantage for the Macquarie European Infrastructure Fund and its investments.

“Macquarie has been investing in infrastructure around the world for more than 12 years and has a strong track record of successful and responsible management. We are uniquely placed to access outstanding opportunities for our investors, and create value for the mutual benefit of investors and the communities that these businesses serve,” he said.

Investor Enquiries
Stuart Green
Head of Investor Relations
Tel: (61 2) 8232 8845
Email: stuart.green@macquarie.com