Macquarie European Infrastructure Fund exceeds €1 billion target

27 May 2005

The Macquarie European Infrastructure Fund today announced it has reached investor commitments of €1.22 billion and increased its fundraising target €1.5 billion.

The Fund was launched in April 2004 and is managed by a member of the Macquarie Bank Group (Macquarie. With its initial fundraising target of €1 billion exceeded, the Fund now expects to reach its maximum cap of €1.5 billion before final closing at the end of June 2005.

It is a wholesale vehicle targeting investments in infrastructure and related assets in certain European OECD countries and is one of a family of Macquarie-managed funds with more than €16 billion in infrastructure equity under management around the world.

Managing Director of the Macquarie European Infrastructure Fund, Jim Craig, says interest in infrastructure as an alternative investment has snowballed since the fund launched.

"The potential for infrastructure as an asset class is being recognised by pension funds and other long-term investors," says Mr Craig. "Infrastructure has unique characteristics as an investment with comparatively stable, long-term, real returns and providing a good match for long-dated liabilities."

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 of France and CDP of Canada, among others.

In the year since it launched, the fund has secured five excellent assets and continues to search for high quality investments for its growing portfolio.

"We are very pleased with the good progress the fund has made in its first year," said Mr Craig. "We continue to investigate a strong pipeline of investment opportunities, particularly in continental Europe where the infrastructure sector is growing and increasingly interesting."

A significant proportion of the Fund is already committed. 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. It is part of the consortium which acquired 70% of Brussels International Airport in November 2004 and will also be a cornerstone investor in the Wales & West gas distribution network in an acquisition due to be completed in June. In March 2005, the fund announced it had acquired 100% of Energy Power Resources Limited, a leading UK renewable energy company.

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.

"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 these businesses serve."

For further information:

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

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