DP World is teaming up with Caisse de depot et placement du Quebec (CDPQ), one of Canada's biggest pension funds, to set up a US$3.7 billion vehicle to invest in ports and terminals.
The Dubai-based global ports operator will hold a 55 per cent stake in the fund and its partner will control the remaining 45 per cent share, a statement from DP World said.
The vehicle will be seeded with two DP World container terminals on Canada's west coast, one in Vancouver and the other at the Port of Prince Rupert in British Columbia, reported The Wall Street Journal.
DP World said CDPQ will pay $645 million for its 45 per cent share in the combined assets. CDPQ is one of Canada's largest institutional investors with assets valued at $255 billion as of the end of June, according to its website.
The establishment of the fund enables DP World to partially exit two of its investments in western Canada even as it builds its portfolio on the country's east coast.
The remainder of the assets are to be invested in ports and terminals globally, excluding DP World's home market of the United Arab Emirates, it said. The fund will focus on existing assets in well-developed countries, but could invest up to 25 per cent in new projects.
Commenting on the deal, DP World's chairman and chief executive, Sultan Bin Sulayem, said: "The opportunity landscape in the port and terminal sector remains significant and this partnership offers us greater flexibility to capitalise on these opportunities while maintaining a strong balance sheet and retaining control."
PORTS
07 December 2016 - 20:47
DP World and Canadian pension fund set up US$3.7b port investment vehicle
DP World is teaming up with Caisse de depot et placement du Quebec (CDPQ), one of Canada's biggest pension funds, to set up a US$3.7 billion vehicle to invest in ports and terminals.
PORTS
07 December 2016 - 20:47
DP World and Canadian pension fund set up US$3.7b port investment vehicle
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