Macquarie European Infrastructure Fund closes oversubscribed

04 July 2005

The Macquarie European Infrastructure Fund today announced its final close, with the Fund well oversubscribed after reaching its cap of €1.5 billion in investor commitments.

The Macquarie European Infrastructure Fund was launched in April 2004. It is the first pan-European dedicated infrastructure fund and has opened the European infrastructure sector to a whole new group of investors. Since it launched, the Fund has received overwhelming support from leading international institutional investors as it rapidly built a well-diversified portfolio of quality infrastructure assets.

Most recent investors include the Belgian pension funds Pension Fund KBC and Suez-Tractebel Pension Fund and US institutional investor Northwestern Mutual. They join other leading institutions from the UK, Europe, North America and Australasia including Canada Pension Plan Investment Board, Germany's HSH Nordbank, ABP of the Netherlands, British Airways Pension Fund, Oslo Pensjonsforsikring, Generali of Italy and CDP of Canada, among others.

Managing Director of the Macquarie European Infrastructure Fund, Jim Craig, says the benefits of infrastructure investment are increasingly well recognised among institutional investors looking for the predictable, sustainable, long-term returns which characterise infrastructure assets. Alongside this demand, the European infrastructure sector is generating a strong pipeline of investment opportunities, allowing the Fund to match investor requirements with a diverse, high quality portfolio of assets.

"We are very pleased with the support the Fund has received from such a broad range of leading international institutions. In just 14 months we have committed approximately half of the Fund to a portfolio of assets that provide both geographic and industry diversification and the Fund has already paid two cash distributions," said Mr Craig. "Over the next twelve months we will continue to look for high quality assets for the Fund."

The Macquarie European Infrastructure Fund aims to deliver sustainable cash yields and moderate capital growth from long-term investment in a diversified portfolio of quality infrastructure assets, including transport assets, electricity and gas transmission and distribution networks, water and sewerage companies, communications infrastructure and renewable energy assets. The Fund's growing portfolio includes:

• 100% of Arlanda Express, the high speed rail service linking Sweden's Arlanda Airport to Stockholm city centre
• 50.1% interest in UK utility South East Water
• 10% interest in Brussels Airport (within a Macquarie consortium that owns 70% of the airport)
• 31% of Wales & West Utilities, a UK gas distribution network
• 49% of NRE Holding N.V., a gas and electricity distribution network in the Netherlands*
• 100% of Energy Power Resources Limited (UK), owner and manager of the UK's largest portfolio of biomass fuelled renewable energy assets
• 100% of Energy Power Resources (Europe), a portfolio of wind power generation plants in France and Sweden.
• 100% of Wightlink, the largest independent owner and operator of ferries and ports in the UK*

*pending completion

The Fund is managed by a member of the Macquarie Bank Group (Macquarie), a global leader in infrastructure investment with over €16 billion in infrastructure equity under management around the world.

Mr Arthur Rakowski, Executive Director in Macquarie's European Infrastructure and Specialised Funds business, said the demand for managed infrastructure investments is such that new European funds are now being considered by Macquarie.

"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.

For further information:

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

Editors Note

Members of the Macquarie Bank Group manage over €16bn in infrastructure equity around the world through a range of listed and unlisted vehicles. Infrastructure investments managed by Macquarie include assets in transportation, water, telecommunications and energy sectors in countries including the UK, Germany, Portugal, Italy, Sweden, Belgium, Netherlands, Canada, USA, Australia, New Zealand, Korea, Japan, and South Africa. Macquarie has built a strong track record in adding value to the businesses it owns and operates and brings the benefits of global resources, relationships and expertise to its infrastructure businesses and the communities they serve.

The Macquarie Bank Group is a diversified international provider of specialist financial and investment banking services with over 6,500 people in 23 countries. Macquarie's European base is London, with offices in Dublin, Frankfurt, Geneva, Milan, Munich, Paris, Rome and Vienna.