MELBOURNE, Australia--(BUSINESS WIRE)--Infrastructure investor Hastings Funds Management Limited (Hastings) as manager for Utilities Trust of Australia is to add a further strategic asset to its global portfolio, as a key member of the successful consortium for the long-term lease of the assets of TransGrid from the State of New South Wales (NSW). TransGrid is the largest high-voltage electricity network in Australia by electricity transmitted, spanning New South Wales and the Australian Capital Territory.
Hastings as manager, and Utilities of Australia P/L (UoA) as trustee for Utilities Trust of Australia (UTA), with its partners in the NSW Electricity Network (NSWEN) consortium, will enter into a 99-year lease of TransGrid’s high quality network infrastructure assets. Funds invested with UTA will be used to satisfy the funding contribution to the consortium.
The other members of the NSWEN winning consortium are the ASX-listed Spark Infrastructure, Caisse de dépôt et placement du Québec, Tawreed Investments Limited (a wholly-owned subsidiary of the Abu Dhabi Investment Authority) and Wren House Infrastructure Management.
Hastings has extensive experience in managing regulated networks in Australia through its ownership interests in ElectraNet, the regulated electricity transmission network in South Australia, and the Sydney Desalination Plant in NSW. Hastings also has global utilities experience through owning South East Water and Phoenix Natural Gas in the UK.
TransGrid adds to Hastings’ numerous infrastructure investments in NSW, including the Port of Newcastle, the Interlink M5 toll road and the Sydney Desalination Plant, strengthening its investment portfolio of long-term infrastructure assets around the world including gas, rail and water utilities and airports.
UoA Chairman Rob Jolly said he was pleased to be in a position to make a further long-term investment in critical infrastructure in NSW and indeed Australia, in the process investing the funds of its long-standing clients.
“This type of infrastructure asset generates long-term, sustainable returns for UTA’s investors,” he said.
Hastings’ Chief Executive, Andrew Day, said that being part of the winning consortium was yet another example of Hastings’ ability to bring together such investors and their respective funding to acquire and expertly manage – essential infrastructure assets.
“We are delighted to have the opportunity again to partner with the NSW Government and the people of NSW. We share the State’s goals and are committed to the efficient, safe and reliable operation and development of the transmission network to support the continued economic growth of NSW, including in regional and rural areas.”
“The Hastings model is to manage assets that aim to deliver consistent, reliable and optimal returns”, he said, “providing the relevant infrastructure skill set and a passion for long-term ownership”.
Hastings is a specialist manager dedicated to transforming global infrastructure investment opportunities to deliver long-term value for its investors.
From its headquarters in Melbourne, Hastings has built a global footprint with offices in Sydney, Singapore, London, New York and Seoul and collectively employs over 100 staff. It currently manages approximately A$11.8 billion across a number of funds and mandates (as at 30 September 2015). Hastings’ clientele totals some 60 institutional investors.
Hastings is dedicated to the infrastructure sector and with almost two decades of experience is one of Australia’s longest running and most qualified infrastructure managers. It established one of the first infrastructure equity funds, Utilities Trust of Australia, in 1994 and one of the first infrastructure debt funds when it launched the Hastings Yield Fund in 1999.
The Hastings asset portfolio predominantly comprises utilities, airports, toll roads and seaports in Australia, the UK, Europe and the US. The primary focus is on building a diversified portfolio of equity and debt-based infrastructure investments.
The Hastings team covers asset finance, business development, client services, portfolio construction, origination, and infrastructure investing.
UTA is a proven open-ended unit trust managed by Hastings and focused on investing in infrastructure assets globally. Established in 1994, UTA has outperformed its benchmark on a since-inception basis via Hastings’ disciplined approach to portfolio construction and individual asset selection, strong focus on revenue risk, multi-layered investment process and active approach to asset management.
The fund has a quality portfolio of existing assets in Australia, Europe and the US and a track record of delivering superior risk adjusted investment returns over time. UTA is a core infrastructure product for institutional investors with a long-term investment horizon and a low-to-moderate appetite for risk. Hastings’ objective for UTA is to consistently provide investors with benchmark plus returns over the medium term by taking influential positions in infrastructure assets in Australia and select countries globally.
TransGrid is the largest high-voltage electricity network in Australia by electricity transmitted spanning New South Wales and the Australian Capital Territory. TransGrid’s core role is to provide safe, reliable and efficient transmission services to NSW, the Australian Capital Territory and the national electricity market, connecting generators, distributors and major end users in NSW and the ACT.
Its network is the backbone of the entire NSW electricity system. It has been built up over 60 years, and comprises 97 bulk supply sub-stations and almost 13,000 kilometres of high-voltage transmission lines and cables. Interconnected to Queensland and Victoria, the network enables energy trading between Australia’s three-largest States along the east coast and supports a competitive wholesale electricity market.
TransGrid’s head office is based in the Sydney CBD, with operations at sites around NSW including western Sydney, Orange, Wagga Wagga, Yass, Tamworth and Newcastle.
This media release has been prepared by Hastings Funds Management Limited ABN 27 058 693 388 (Hastings), holder of Australian Financial Services license number 238309. Hastings is a subsidiary of Westpac Banking Corporation ABN 33 007 457 141 (Westpac).
The information contained herein is for informational purposes only and does not constitute an offer to issue or arrange to issue financial products. The information contained herein is not financial product advice. This media release has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you should read the publicly available information carefully and consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.
Neither Hastings, Westpac or any other members of the Westpac Group gives any guarantee or assurance as to the performance or the repayment of capital. Investments in funds are not investments, deposits or other liabilities of Hastings, Westpac or other members of the Westpac Group.
All data in this document has been calculated using the most accurate sources available, however any rates or totals manually calculated may differ from those shown due to rounding. Figures may also differ from those previously disclosed due to adjustments made following period end.