The Abu Dhabi Investment Authority joins funds to purchase the port from the Queensland government.
ADIA links up to take over Port of Brisbane
Abu Dhabi Investment Authority (ADIA), one of the world's largest sovereign wealth funds, has joined US and Australian funds to buy the Port of Brisbane from Australia's Queensland government for A$2.1 billion (Dh7.71bn).
The investment in one of Australia's most important container ports expands ADIA's income-generating infrastructure assets and comes after recent investments in London Gatwick Airport and a long-term lease on Chicago's parking meters.
ADIA was among a four-member team of Q Port Holdings made up of Global Infrastructure Partners of the US, and QIC and Industry Funds Management of Australia.
The group will take over ownership of the port under a 99-year lease. At present it is managed by DP World, the Dubai ports company, which says the port is the largest in Queensland and the fastest-growing in Australia.
The Abu Dhabi fund, through its subsidiary Tawreed Investments, took a 19 per cent stake in the port with the other three funds each claiming 27 per cent stakes, according to Andrew Fraser, the Queensland treasurer and minister for employment and economic development.
"This is a quality group of investors with the skill and balance sheet to ensure the future development of the port," said Mr Fraser. "By achieving this value-for-money transaction, taxpayers will also avoid expected infrastructure expansions at the port worth up to A$1bn."
ADIA is considered a long-term investor in infrastructure projects, often taking minority positions to maintain its low investing profile. The fund has averaged annual returns of 6.5 per cent over the past 20 years, it was revealed this year in its first annual review.
The fund boasts an estimated wealth of more than US$500bn (Dh1.83 trillion) in assets, and puts between 35 and 45 per cent of those assets in developed market stocks.
Between 10 and 20 per cent of its investments are made in emerging market stocks, with a similar proportion in government bonds.
Riskier asset classes, such as property, hedge funds and small companies each comprise up to 10 per cent of its portfolio. The fund also keeps up to 10 per cent of its assets in cash.
* with additional reporting by Asa Fitch