Land Services SA has been selected preferred bidder for the 40-year commercialization of the South Australian Land Services Group.

Land Services SA is a consortium comprising Macquarie Infrastructure & Real Assets (MIRA) and its managed funds and the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers.

As part of its bid, Land Services SA will invest in the establishment of an Innovation Hub in Adelaide to encourage new businesses and investment in the start-up sector.

The SA Government will receive AUD1.6 billion (US$1.3 billion) in an upfront payment which includes certain optionality for the life of the contract.

Commercial terms of the transaction are confidential. The transaction is expected to close in the fourth quarter 2017.

Land Services SA Chairperson, the Hon Dr Annabelle Bennett AO SC, said:

“It is a privilege to be selected as the custodian of this essential service which underpins the integrity of the South Australian property market and makes an important contribution to its economy.

The members of Land Services SA have a track-record of responsibly providing essential services and a history of investing on a long-term and sustainable basis. They respect and understand the responsibilities to customers, stakeholders and the broader community that come with operating this important asset.

Our long-term vision is to enhance Land Services Group’s delivery of reliable and high-quality services for the South Australian community by investing in its people and technology. We have clear goals to enhance customers’ experience, improve registration processing times and invest in electronically-delivered services.

MIRA’s Co-head of Asia-Pacific, Frank Kwok said:

“We recognize the trusted relationship Land Services Group has developed with its customers and stakeholders. These principles of trust and integrity also underpin MIRA’s 23-year track record of investing in and managing essential community assets in Australia and internationally.

We also look forward to participating in the South Australian economy through investing in Land Services Group, and establishing the Innovation Hub.”

Guthrie Stewart, Senior Vice President and Global Head of Private Investments, PSP Investments, said:

“As a long-term investor, PSP Investments looks forward to working closely with our partner to deliver this high-value essential service to the South Australian community.

We are honoured to be entrusted with the stewardship of an essential service that is key to the property market and economic activity in South Australia. Under our stewardship, the Land Services Group will remain fully dedicated to engaging with its diverse community stakeholders and developing productive, long-term relationships.”