AMP Capital has announced today that it has entered into an agreement to acquire 42 % of New Zealand's second largest electricity and gas distribution company, Powerco NZ Holdings Limited, from Brookfield Infrastructure for NZ$525 million which represents an enterprise value of approximately NZ$1 billion.

Brookfield Infrastructure had acquired its initial interest in the business in 2009 as part of the recapitalization of Babcock & Brown Infrastructure.

This investment has been made on behalf of a number of AMP Capital clients and managed funds, including a significant investment by the AMP Capital Infrastructure Equity Fund (IEF) and the AMP Capital Core Infrastructure Fund (CIF).

AMP Capital Global Head of Infrastructure Scott Davies said:

"AMP Capital brings a wealth of global expertise in the regulated utility sector and we are very pleased with this investment.

"We are an experienced asset manager of critical infrastructure assets and have a long term strategy to manage and improve the assets under our management. We see significant opportunity for further growth in the business, with Powerco supplying key population growth regions in New Zealand.

"The strength of the Powerco business and the New Zealand economy makes this an attractive investment for our managed funds and clients. This transaction offers them exposure to a geographically diversified quality asset in the core regulated utility sector.

"We're committed to the New Zealand market where AMP Capital has been managing investment funds since the 1920s," Mr Davies said.

Powerco supplies electricity and gas to more than 426,000 consumers (323,093 electricity and 103,313 gas connections) in New Zealand's North Island, representing 16 per cent of the total electricity connections and 40 per cent of the total gas connections in New Zealand.

AMP Capital's internal origination and asset management team led the Powerco deal team which included IEF Fund Manager Michael Cummings, who served on the Board of Powerco from 2008 to 2012.

Sam Pollock, Chief Executive Officer of Brookfield Infrastructure, said:

"This sale provides another opportunity to harvest capital from one of our mature businesses at attractive returns, with the objective of recycling the proceeds into higher returning investments,"

The acquisition is conditional upon approval from the New Zealand Overseas Investment Office and is expected to be completed by the end of 2013.