AustralianSuper’s recent purchase of a 99-year lease on the NSW electricity transmission system, Ausgrid, marks our biggest ever deal and reinforces the benefits that come from our growing size and scale.
Purchased in consortium with IFM investors, the deal represents a 50.4% interest share in a 99-year lease and will see $16.2 billion released in gross proceeds to the New South Wales Government. AustralianSuper is acquiring a direct 25.2% equity interest, with a separate holding through our existing investment in IFM Australian Infrastructure Fund.
It also gives six million Australians a stake in one of Australia’s leading electricity networks and is a perfect example of the positives that come from the recycling of state owned assets. The additional funds are likely to be used by the NSW Government to fund new infrastructure, while the assets remain in the hands of millions of Australian workers and retirees.
“This is a massively significant deal for the Fund and underlines our credentials as a major player in the Australian and global investment markets”
Ian Silk, CEO
“This all-Australian partnership between the millions of members of our two organisations and the NSW Government will maintain and enhance the Ausgrid network, vital to so many NSW communities while providing returns that will contribute to the long term retirement savings of the nation’s workers”, said CEO Ian Silk.
“Ausgrid is a high-quality electricity distribution and transmission business that has been in operation for over 100 years and is vitally important to the NSW economy. We commend the NSW Government for its willingness to harness superannuation money to drive positive outcomes for the State.”
Ausgrid delivers electricity to 1.68 million homes and businesses through their network of electricity distribution and transmission assets that span from Waterfall in Sydney’s south, to Auburn in Western Sydney, Port Stephens in the north and through the upper Hunter Valley. Ausgrid’s network services a franchise area covering 22,275 square kilometres, including over 48,000 kilometres of total circuit length and an array of substations and other infrastructure.
Its main activities are the ownership and management of the electricity distribution and transmission network, infrastructure related metering, construction and maintenance services and community services such as street lighting and safety checks.