Macquarie European Infrastructure Fund reaches €750 million

25 January 2005

The Macquarie European Infrastructure Fund (MEIF) today announced it has reached investor commitments of over €750 million and is on target to achieve €1 billion before its final close later this year.

This is a significant milestone for the wholesale investment fund which was launched in April 2004 and is managed by a member of the Macquarie Bank Group (Macquarie).

The Fund is a wholesale vehicle targeting investments in infrastructure and related assets in European OECD countries. It is the first of its kind in Europe and is one of a family of Macquarie managed funds which combined have over €12 billion in infrastructure equity under management around the world.

Since it launched, the Fund has secured additional commitments of more than €320 million from investors including Canada Pension Plan Investment Board and HSH Nordbank of Germany as well as other institutions from Europe, North America and Australasia.  These institutions join earlier investors in the Fund, including ABP of the Netherlands, one of the world’s largest pension funds, Generali, Italy’s largest insurer, Dexia of France and CDP of Canada, among others.

“Infrastructure is emerging strongly as an alternative asset class,” said Mr Jim Craig, Head of Macquarie Europe and Managing Director of MEIF. “Pension funds and other institutional investors are seeing the potential in the unique characteristics of infrastructure investments which offer comparatively stable, long-term, real returns and provide a good match for long-dated liabilities,” he said.

More than half of the Fund is already committed, reflecting a strong deal flow.  Its seed investments were a 50.1% interest in UK utility South East Water and 100% of Arlanda Express, the high speed rail service linking Sweden’s Arlanda Airport to the Stockholm city centre.  During 2004 MEIF was part of the consortium which acquired 70% of Brussels International Airport.  It will also be a cornerstone investor in the Wales & West gas distribution network in an acquisition expected to be completed in the second quarter of 2005.

According to Mr Craig, the fund continues to search for quality infrastructure assets and expects to make further investments in the next 12 months.

“We continue to look for attractive investment opportunities, particularly in continental Europe, where the infrastructure sector is growing and increasingly interesting,” Mr Craig said.

“After 12 years of investing in infrastructure around the world, Macquarie has a strong track record of successful and responsible infrastructure 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.”

For further information please contact:

Karen Smith
Corporate Communications Manager
Macquarie Bank
Tel: (44) (0) 20 7065 2420