Morrison & Co PIP Limited and Craigs Investment Partners Limited (“Craigs Investment Partners”) today announced an initial public offering of shares by New Zealand Social Infrastructure Fund Limited (“NZSIF”) to raise up to $125 million. NZSIF will enable New Zealand private investors to participate in the development of social infrastructure assets through Public-Private Partnerships (“PPPs”).
NZSIF has been established to invest as a Limited Partner in the Public Infrastructure Partners LP (“the PIP Fund”), an investment fund managed by Morrison & Co PIP Limited, a subsidiary of H.R.L. Morrison & Co Group Limited (“Morrison & Co”). NZSIF will invest in the PIP Fund on substantially the same terms as the Guardians of New Zealand Superannuation (the “NZ Superannuation Fund”) and other institutional investors, providing a dedicated pool of capital to fund the delivery of social infrastructure assets through PPPs, with a focus on New Zealand opportunities. The NZ Superannuation Fund has committed to invest $100 million in the PIP Fund.
Peter Coman, Managing Director of the PIP Fund says "We are delighted to be working with Craigs Investment Partners in developing NZSIF for the investing public NZSIF will invest in the PIP Fund which will be a catalyst to accelerate the development of crucial social infrastructure, stimulate high value economic activity and kick-start a new investment sector in this country. Social infrastructure PPPs are a proven model internationally. Having high-quality private investors focused on providing excellent facilities means that Government agencies can focus on delivering excellent social services.”
Neil Craig, Executive Chairman of Craigs Investment Partners says “The time is right for New Zealand to introduce PPPs as a means of delivering public infrastructure and to offer the New Zealand investing public the opportunity to gain some exposure to this sector.”
The NZ Superannuation Fund’s commitment to invest $100 million in the PIP Fund is a strong endorsement of Morrison & Co’s specialist expertise in infrastructure investment, and of the investment characteristics of social infrastructure PPPs. Long term contracts with Government counterparties, and revenues that are based on asset availability and linked with inflation are characteristics of social infrastructure PPPs that appeal for investors and can benefit portfolios. NZSIF gives retail investors with a longer term investment horizon exposure to a new asset class in their portfolios, on substantially similar terms to institutional investors in the PIP Fund”, said Mr Craig.
The Board of NZSIF is chaired by Kim Ellis, former Chief Executive of Waste Management NZ, as Independent Chairman. Mr Ellis will represent NZSIF on the PIP Fund Advisory Committee. Kim is joined by Ian Fraser, Independent Director, a former Executive Director of Beca Group for more than 20 years. Also on the Board are Neil Craig, Executive Chairman of Craigs Investment Partners and Mike Caird, a director of Craigs Investment Partners and Head of Debt Capital Markets with experience in New Zealand PPP projects in wastewater and hospital carparking.