Korean military fund puts $40m in Australia's infrastructure
South Korea's $8.5 billion Military Mutual Aid Association (MMAA) has been the first offshore and non pension fund investor in Australia's The Infrastructure Fund (TIF).
MMAA was advised by KB Asset Management in Seoul, a firm that is managing over A$33 billion in assets. MMAA is investing A$43 million in TIF, an A$1.5 billion investment fund formed in 1998 by a group of industry super funds to invest in infrastructure.
The Infrastructure Fund is overseen by The Private Capital Group Pty Ltd (TPCG), and its $1.5 billion funds are managed by Hastings Fund Management.
The Infrastructure Fund unit holders are AAI Limited, Australian Catholic Super and Retirement Fund, AustSafe Super, BUSS(Q) Building Super, Cambooya, CIRT, Club Super, Energy Super, Meat Industry Employees Super Fund, Mercy Super, Military Mutual Aid Association, Motor Accident Insurance Board (Tas), NGS Super, QIEC Super, Suncorp Life & Super, and Sunsuper.
Bob Lette, TPCG Chairman, stated:
MMAA was attracted by TPCG's like-minded investment approach - delivering investors consistent, sustainable and above-benchmark returns through an expanding and diversified portfolio of infrastructure assets This deal was initiated by our manager Hastings Funds Management. In the end, TIF's strategic approach, governance structure and return track record gave MMAA the confidence that we can deliver what they need
The investment reflects MMAA's plans to increase its overseas investments, particularly in quality infrastructure, to generate consistent returns in the medium to long term. MMAA hopes to get more Australian Infrastructure investment opportunities through their investment in TIF.
In early 2014, a consortium formed by TIF and China Merchants Group won the tender process for the 99-year lease of Port of Newcastle. The A$1.75 billion concession was awarded by the New South Wales Government.
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