Australian Future Fund ups the anti

As reported, earlier last week the Future Fund was part of a consortium that agreed to buy the South Australia Government’s forestry plantations for more than AU$600 million. On Friday last week it also announced (see Media release) it had entered a conditional arrangement to acquire all the assets of the Australian Infrastructure Fund for AU$2 billion.

If the proposal is followed through to a completed transaction, the Future Fund would acquire Australian Infrastructure Fund’s interests in a portfolio of airport assets. The deal is subject to due diligence and will almost inevitably change shape to some degree given that the Australian Infrastructure Fund portfolio of investments will be riddled with pre-emptive rights held by third parties.

Assuming it proceeds, however, it would deliver the Future Fund a portfolio of investments in a range of Australian airports and roughly double the investment it has in infrastructure within its AU$77 billion portfolio. At the moment the fund groups infrastructure and timber together and they constitute AU$4.3 billion or 5.6 per cent of the portfolio.

Source: Business Spectator

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