Australia-based AMP Capital Partners has announced a $750 million Asian Giants Infrastructure Fund (AGIF), which will invest in infrastructure projects predominantly in India and China. The fund will invest in sectors such as transport, power and energy, telecommunication, social, industrial and urban infrastructure.
The fund has already made its first investment of $25 million in Gayatri Infra Ventures Ltd (GIVL), a wholly owned subsidiary of Hyderabad-based Gayatri Projects Ltd. AMP Capital Partners has the option to invest $25 million more GIVL.
The initial fundraising for AGIF is expected to close on 29 August at $150 million. AGIF will also invest in South Korea, Taiwan, Malaysia, Hong Kong and Singapore. AGIF will invest up to 70 per cent of total investor commitments in China or India and no more than 30 per cent of total investor commitments in the other target Asian countries.
“AMP Capital Asian Giants Infrastructure Fund builds on our strong track record in India’s infrastructure market. AGIF will use the scale, breadth and expertise of AMP Capital and our experienced infrastructure team, complemented by its local network of deal-sourcing specialists,” said Anoop Seth, AMP Capital Investors’ Head of Infrastructure – Asia.
The firm has invested $100 million in Indian infrastructure from its earlier two funds and some of its investments include Indraprasta Gas (IGL), Bharti Telecom and Pipavav Port. Their investments in India has given them a rate of return in excess of 25 per cent. The IRR expectation of current fund is in excess of 20 per cent.
“Asian markets are expected to invest significantly in infrastructure in the future and this will provide investment opportunities for the private sector. Rapid urbanisation and population growth are driving the need for growth in social and economic infrastructure. Accordingly, the infrastructure spend requirement in Asia is estimated to be three times higher than the global average,” said Philip Garling, AMP Capital Investors Global Head of Infrastructure. AMP Capital manages assets in excess of $97 billion assets under management and $3.1 billion in infrastructure investments in Australia, New Zealand, Asia and Europe.