PIP Fund announces new investment in key health worker accommodation
The Morrison & Co Public Infrastructure Partners (“PIP”) Fund is pleased announce an investment in key health worker accommodation in Victoria, Australia. This is the third successful investment for the PIP Fund which has been established to invest in community related infrastructure assets on behalf of New Zealand institutional, community and retail investors.
The PIP Fund has invested in the development and long term ownership of 120 residential apartments required for key health workers at the Bendigo Hospital. The residential scheme has an expected end value c.A$20m and has been leased for 30 years to the Bendigo Health authority. Bendigo Health is currently procuring new hospital facilities through a c.A$600m public private partnership (“PPP”) and requires modern, fit for purpose residential accommodation for short tenure staff and visiting professionals.
The transaction fits the PIP Fund’s investment criteria which targets long term, low risk government backed cashflows. The lease structure provides for annual inflation indexation. The PIP Fund completed New Zealand’s first PPP transaction in 2012 with the Hobsonville Schools transaction, it currently owns 50% of the Melbourne Convention and Exhibition Centre and has been shortlisted as one of two bidders for the Transmission Gully PPP currently being procured by NZTA.
Morrison & Co's Australia Social Infrastrcuture Partners fund announces first investments
11 April 2013
H.R.L. Morrison & Co is pleased to confirm that the Australia Social Infrastructure Partners (“ASIP”) fund has completed its first acquisitions following achievement of first close in December 2012. ASIP is Morrison & Co’s second fund in the PPP sector, and is focussed exclusively on availability-based PPP projects in the Australian market. The fund comprises three trusts: the Leighton Contractors Infrastructure Partners Unit Trust (“LCIP”) and the LCIP Co-Investment Unit Trust (“LCIT”), both of which are co-sponsored by Leighton Contractors; and the Public Infrastructure Partners Australia Unit Trust.
The assets purchased are interests in the South East Queensland Schools and the Royal Adelaide Hospital PPP projects, which were acquired from Leighton Contractors as part of a broader strategic alliance to pursue the A$30 billion pipeline of availability-based PPP projects in the Australian market. Under the alliance arrangements, ASIP’s institutional investors will have the opportunity to participate in future Leighton Contractors’ PPP projects through LCIT.
Mark Mudie, Executive Director of ASIP, described the acquisitions and Leighton Contractors relationship as significant milestones for the ASIP fund. “The South East Queensland Schools and Royal Adelaide Hospital PPP projects are attractive foundation assets for the fund. Looking beyond these first investments ASIP, through LCIT, has preferred access to upcoming social infrastructure PPP opportunities working with Leighton Contractors, who have outstanding experience and track record in the delivery of PPP projects.”
Peter Hicks, CFO of Leighton Contractors, described the alliance with ASIP as “providing Leighton Contractors with a long term equity partner to pursue our core business of delivering infrastructure projects in the Australian market. Our commitment to the success of ASIP and our projects is evidenced by our co-sponsorship of and investment in LCIT alongside ASIP’s institutional investors”.
In addition to investing in Leighton Contractors’ greenfield projects, ASIP will also target brownfield and potentially other greenfield PPP opportunities in Australia through the Public Infrastructure Partners Australia Unit Trust. “As equity managers we need to maintain flexibility in assessing a wide range of PPP investment opportunities for our investors,” said Mr Mudie. “We have preserved this through the alliance terms agreed with Leighton Contractors.”
Morrison & Co has completed five PPP investments in recent years, and is targeting a final close for the ASIP fund in 2013.
HR Lloyd Morrison
10 February 2012
H.R.L. Morrison & Co is deeply saddened to announce that Lloyd Morrison passed away this morning in Seattle, Washington.
In August 1988 Lloyd returned to his beloved Wellington and established H.R.L. Morrison & Co Ltd. In 1994 he founded Infratil and his inspirational leadership, vision, charisma, and energy has been the driving force in creating what Infratil is today.
Lloyd was a truly passionate New Zealander and he made an immeasurable contribution to both the business and arts communities in New Zealand as a friend, colleague, patron and mentor.
On behalf of all his Morrison & Co family, our thoughts and hearts are with those he loved the most, his wife Julie Nevett, his children Isabella, Madeleine, Ottilie, Vita and Elliott and his extended family. Lloyd will be greatly missed by all of us who had the opportunity to be part of his life and share his passion.
29 August 2011
Rhoda Holmes joins H.R.L. Morrison & Co
Marko Bogoievski Chief Executive of H.R.L Morrison & Co is pleased to announce that Rhoda Holmes will be joining the leadership team based in Wellington from September 2011.
Rhoda worked with Morrison & Co prior to the purchase of Z Energy, developing the transition and operations plan and subsequently working with the Z Energy team to successfully establish it as a standalone New Zealand business.
Rhoda has over 20 years of extensive change management and operations experience in the telecommunications and IT industries in the UK, Australia and New Zealand. Prior to her work with Morrison & Co, she was CEO of Optimation New Zealand and led Telecom/Gen-i’s transtasman business for major customers.
Rhoda holds an MSC in Telecommunications Engineering and Business Management from University of London, and is a Director of Kordia Limited.
Rhoda will focus on optimising group investments in operations, systems and people.
25 July 2011
Steven Fitzgerald joins H.R.L. Morrison & CO as Executive Director, Airports Group
Steven Fitzgerald, Wellington Airport’s Chief Executive Officer, is moving to a full-time position with H.R.L. Morrison & Co, where he will be responsible for airport investment. Steve will remain on the board of Wellington Airport, but step down from the CEO role on 5 August 2011 and relocate to Morrison & Co’s Sydney office in late August. John Howarth, the Airport’s Chief Operating Officer will take over the CEO role on an acting basis while an international search is conducted to find the next WIAL chief. Steve will also remain as Chair of Infratil Airports Europe Limited.
Marko Bogoievski, Chief Executive of HRL Morrison & Co. said: “Steve brings a wealth of operational experience to our airports group and will significantly enhance our existing capability in the sector." Steve Fitzgerald joined Wellington Airport as CEO in January 2008, having previously run Infratil’s European Airports. A number of high profile projects were completed during his tenure including the unique copper plated terminal extension – the Rock. The Airport’s 2030 Master Plan was drafted and finalised during this time and several projects included within it are now well underway including the redevelopment of the general aviation area. "The period has been a difficult and Wellington Airport has shown considerable resilience in terms of passenger numbers, and new commercial initiatives have allowed earnings to continue to grow." Steve joined Infratil in January 2005 after a senior executive role with Sydney Airport.
10 March 2011
H.R.L. Morrison & Co announces the appointment of Jason Boyes as Head of Legal
Jason Boyes has been appointed as the new Head of Legal commencing in April.
The role has overall functional responsibility for all legal matters concerning the Morrison & Co Group including involvement in mergers and acquisitions, capital markets, mandates, compliance, fund structure design, and advice concerning the Infratil listed company mandate. Importantly, the Head of Legal will also provide guidance and oversight of the legal function across the Infratil Group including coordination with subsidiary company senior executives, and assessment of Infratil’s overall legal risk profile.
Jason will join the senior management team at Morrison & Co and assume broad executive responsibilities across the Group, including director roles in subsidiary companies that will be announced in due course.
Marko Bogoievski said "I am delighted to be able to attract someone of Jason’s calibre."
Jason has been a lawyer at Buddle Findlay for 13 years – the last seven as a partner, specialising in corporate, securities, and finance transactions. In that time, he has worked closely with Morrison & Co and Infratil on financing transactions and most recently Infratil's investment in Greenstone Energy.
Jason also worked for two years at Slaughter and May in London, specialising in structured finance and offshore funds. He has a BCA and LLB (Hons.) (first class) from Victoria University of Wellington.
9 February 2011
NZX consults on new infrastructure index
NZX has released today a short consultation paper on a new index of the top 10 NZX listed infrastructure stocks. The Investable Infrastructure Index will be the first in a series of Investable Indices, with a Construction and Property index next in line.
Comprising high-liquidity, widely held stocks, the Investable Indices will be an attractive base for index funds, index futures and Exchange Traded Funds, and will enable targeted and sector-specific investment in the New Zealand market.
NZX plans to name the indices after individuals who have made outstanding efforts to develop and advance the related sector. The Investable Infrastructure Index will be named after Lloyd Morrison CNZM, in recognition of his instrumental contribution to the New Zealand infrastructure sector at many levels, including an enormous impact on quality and efficiency, and in taking New Zealand infrastructure exports globally to Australia, the US and the UK.
Lloyd Morrison said, “The establishment of investable sector indices by NZX is a smart move. While the infrastructure sector is one of the best represented on the NZX markets already, the impending float of the SOE electricity companies will give even greater substance to the index.”
NZX CEO Mark Weldon said, “Markets are not black boxes - they have their own characteristics, and develop according to the leadership decisions of those who participate in them.
“The NZX Markets are indebted to Lloyd Morrison for his contribution, and we are pleased to honour his contribution personally by naming a key sector index after him. We look forward to similar recognition for other great contributors in the future,” said Weldon.
16 August 2010
Morrison & Co PIP Fund Announces Melbourne Convention Centre Investment
The Morrison & Co Public Infrastructure Partnership Fund (PIP Fund) today announced a joint venture agreement with Plenary Group through which the PIP Fund will invest in the Melbourne Convention & Exhibition Centre Public-Private Partnership (PPP).
The Melbourne Convention Centre was completed in 2009 and includes a 5,000 seat hall, 32 meeting rooms and a grand banquet room. It is the first convention centre in the world to receive a '6 Star Green Star' environmental rating for design and has won a number of architectural awards.
Under the PPP model the public sector retains responsibility for attracting events to the Convention Centre. The private partner is contracted to build and maintain the facility, and receives a pre-agreed ongoing payment for making it available for use.
Steven Proctor, Executive Director of the PIP Fund, said the investment in the Melbourne Convention & Exhibition Centre provides an excellent opportunity for the Fund to participate in a high quality, operational PPP asset:
"This is an outstanding facility which is operating well and has a 25 year PPP contract in place. As such it represents an ideal long term, stable investment for our PIP Fund. The fact that we're able to invest under a joint venture arrangement with a specialist local PPP investor like Plenary Group makes this all the more attractive for us."
The New Zealand Ministry of Economic Development has announced its intention to develop a National Convention Centre and will soon be revealing its preferred location. Mr Proctor confirmed the PIP Fund's interest in investing in such a facility; "Whichever site the Government selects, the PIP Fund would like to fund and deliver the New Zealand National Convention Centre as a public-private partnership."
Mr Proctor also noted the recent New Zealand Government announcement that agencies proposing projects with a cost of more than $25m would be required to consider PPP procurement options and that, in the medium term, this should lead to more opportunities for the fund.
Morrison & Co's PIP Fund was established in October 2009 to make long term investments in social infrastructure assets (such as schools, hospitals or community facilities) through public-private partnerships. The PIP Fund is managed by Morrison & Co and its investors include the NZ Superannuation Fund and the NZ Social Infrastructure Fund.
This will be the PIP Fund's first investment. The transaction is subject to the consent of the Victorian State Government and the approval of the Foreign Investment Review Board.
21 June 2010
H.R.L. Morrison & Co Limited (“Morrison & Co”) announces the appointment of Anthony Muh as Executive Director of Morrison & Co
H.R.L. Morrison & Co Limited (“Morrison & Co”) announces the appointment of Anthony Muh as Executive Director of Morrison & Co and CEO of Morrison & Co’s asset management businesses based in Hong Kong. Anthony, a New Zealander with considerable experience in asset management began his career in New Zealand with Bank of New Zealand Investment Management. He then spent more than a decade with Citigroup Asset Management and Salomon Brothers Asset Management as its Asia Pacific Head of Investment and Chief Investment Officer. He was a member of Citigroup’s Hong Kong country Board and also a member of Citigroup Asset Management’s global asset management committee. More recently Anthony established the Asia Pacific office for Alliance Trust Plc, UK’s largest listed closed-end investment company and launched its inaugural asset management business. Anthony has been recognised in the industry with numerous awards and accolades. He is currently on the board of the Asia Corporate Governance Association and Hong Kong Securities Institute. He is an advisory board member for Euromoney Institutional Investors Plc and is a member of the New Zealand Business Advisory Board to the New Zealand Chamber of Commerce in Hong Kong.
Chairman Lloyd Morrison and CEO Marko Bogoievski noted “Anthony’s appointment is a significant step forward for Morrison & Co. We are opening an office in a major financial centre as a further window into international investment opportunities and capital markets. Anthony has had an association with Morrison & Co since 2007 as an independent director of Infratil. Over this period we have had the benefit of Anthony’s first hand perspective of Asia and emerging market’s growth and its increasing impact on world economies. We are confident that through Anthony, Morrison & Co will be able to extend its position as a successful alternative asset manager of global infrastructure and other assets.”
Anthony says “I am very excited to become a member the Morrison & Co Group. H.R.L. Morrison & Co is already recognised as one of the world’s top alternative asset managers specialising in infrastructure; it has an analytical and operational capability second to none. This is a fantastic platform to build and extend Morrison & Co’s capacity and capability to develop a focused suite of products and use its expertise to service investors both within New Zealand, Australia and around the world.”
3 May 2010
Successful close for New Zealand Social Infrastructure Fund capital raising
Morrison & Co PIP Limited and Craigs Investment Partners Limited are pleased to announce the successful close last Friday of the initial public offer (IPO) of shares by the New Zealand Social Infrastructure Fund Limited (NZSIF).
The capital raising closed with $41 million of committed capital from approximately 750 investors including private investors, community groups, charitable trusts, Maori trust organisations and Craigs Investment Partners itself.
NZSIF will invest as a Limited Partner in the Public Infrastructure Partners Limited Partnership (the PIP Fund), an institutional fund established to invest in public-private partnerships (PPPs) that deliver social infrastructure assets (such as schools, hospitals and local government facilities) to the community.
The NZSIF board is pleased with the outcome and the widespread investor support shown during challenging market conditions both globally and locally over the last two months. The amount raised represents the largest successful equity raising in New Zealand this year available to the investing public.
“The level of support from investors for NZSIF was pleasing, particularly with markets going through an unsettled period in recent weeks. It required investors to take a long term view and social infrastructure as an asset class is very well suited to that. It should also be noted that this is the first, and possibly only opportunity New Zealand retail investors have to invest in this new asset class,” said Neil Craig, Executive Chairman of Craigs Investment Partners and director of NZSIF.
In addition to the $41 million of committed capital raised for NZSIF, Morrison & Co is currently in discussions with several large investors and expects these to lift the total capital committed to the PIP Fund to date to approximately $160 million.
“We are delighted to have such a broad group of investors participating in the PIP Fund via NZSIF,” said Peter Coman, Managing Director of the Morrison & Co PIP Fund. “With the combination of retail and institutional commitments approaching $160 million, we are well on the way to our overall target of raising over $200 million for the PIP Fund.”
The PIP Fund is continuing its institutional capital raising process with final close of the institutional fund in October 2010.
23 April 2010
Morrison & Co attracts experienced PPP investor to New Zealand
New Zealand infrastructure investor H.R.L. Morrison & Co has announced the appointment of Steven Proctor as Executive Director, Public Infrastructure Partnerships, to manage emerging deal flow.
Mr Proctor has been working in the public-private partnership (PPP) sector since 1995. Prior to joining Morrison & Co he was a Principal in the Private Equity department of Henderson Global Investors in the UK. Within the PPP sector he has worked as Sponsor (purchasing and bidding infrastructure projects), Lead Arranging banker (lending into several UK PPP transactions) and as a Financial Advisor (advising both project developers and various governments).
Peter Coman, Managing Director of the Morrison & Co PIP Fund, described Mr Proctor's appointment as an exciting development for the Fund and a very positive signal for the broader New Zealand PPP market:
"PPPs are well-established internationally, but are still an emerging investment sector in New Zealand. The fact that we've been able to attract a PPP investor of Steven's calibre and experience to this country is a great endorsement of the market opportunity here in New Zealand."
Mr Coman stated that Mr Proctor will add to Morrison & Co's capacity to assess, execute and manage PPP investments.
"Recent Government announcements regarding potential PPP projects in the Education and Corrections sectors have validated Morrison & Co's 'early-mover' strategy in the New Zealand PPP market," Mr Coman observed. "They also validate the New Zealand Superannuation Fund's decision to commit $100m to Morrison & Co's Public Infrastructure Partnership Fund."
"In addition to the new projects announced by Government, we are currently in due diligence on two existing PPP assets. Bringing Steven on board will give us greater bandwidth to manage this deal flow."
Mr Proctor said that he is excited by the opportunities offered by the New Zealand PPP market.
"Having been active in the early days of the PPP industry in the UK market and seen this investment sector mature over the last 15 years, I'm delighted to be able to be a part of the development of the PPP market in New Zealand. By drawing on lessons from international markets, New Zealand will be able to implement PPP models that deliver more cost effective infrastructure assets for taxpayers while also providing attractive, stable long term returns for investors."
Morrison & Co and Craigs Investment Partners are currently promoting the New Zealand Social Infrastructure Fund, which will provide an opportunity for retail and private investors to invest alongside the New Zealand Superannuation Fund in the social infrastructure PPP sector. This offer is due to close on 30 April 2010.
14 April 2010
The Morrison & Co Public Infrastructure Partnership Fund (“PIP Fund”) is pleased to learn that the Government intends to procure the new Wiri prison in a public private partnership (“PPP”).
Peter Coman, Managing Director of the PIP Fund said, “This announcement is a very strong endorsement of our initiative to form the PIP Fund and it is a strong validation of the value the public private partnership model brings to the procurement of social infrastructure by the Crown”.
“We are particularly pleased to see Infrastructure Minister Bill English’s statement that public private partnerships can provide better value to taxpayers, and his confirmation that the Government is open to broader private sector involvement in the delivery of social infrastructure.”
22 March 2010
Morrison & Co believes that environmental, social and governance (ESG) issues play a vital role in NZ and Australia, and further afield.
In March 2010, we became a signatory to the UN Principles for Responsible Investment. We are committed to the implementation of the Principles in our operations. ESG analysis is an integral part of due diligence before Morrison & Co recommends an investment. Following investment, Morrison & Co will engage with the investee companies to implement ESG practices.
While some of our mandates are global in nature we have avoided countries where political risk and corruption represent material risk. As a guide we use the OECD Consensus Country Classifications. Currently, all our investments, without, exception, are in the highest quality category.
We believe that ESG issues will positively affect the performance of our investment portfolios in the long term.
15 March 2010
Morrison & Co and Craigs Investment Partners launch fund to invest in Social Infrastructure PPPs
Morrison & Co PIP Limited and Craigs Investment Partners Limited (“Craigs Investment Partners”) today announced an initial public offering of shares by New Zealand Social Infrastructure Fund Limited (“NZSIF”) to raise up to $125 million. NZSIF will enable New Zealand private investors to participate in the development of social infrastructure assets through Public-Private Partnerships (“PPPs”). Click here for the full media release
23 February 2010
Tim Skerman joins MCO investment management team in Sydney
HRL Morrison & Co is pleased to announce the appointment of Tim Skerman to its investment management team based in Sydney.
Tim has responsibility for business development, origination, and execution of infrastructure investment opportunities across Australia and NZ and joins as a senior executive of the specialist Australasian infrastructure investment manager. The major clients of Morrison & Co. include the NZX-listed entity Infratil limited and the NZ Superannuation Fund with over $5billion of assets under management.
Tim was most recently with Ecofin, an investment management firm specialising in listed and private investments in the utility and infrastructure sectors, where he originated and executed special situation investments globally and held portfolio responsibility for investments in Australia and New Zealand. His experience includes M&A, corporate finance and consultancy in the energy sector and he holds a Masters in Applied Finance from Macquarie University. Tim returns to Australia after 10 years in London.
Morrison & Co Chief Executive Marko Bogoievski highlighted the current opportunities in Australia and NZ. “Tim adds significant depth to the senior executive ranks at Morrison & Co. and will enable us to actively pursue the full range of infrastructure opportunities across Australia and NZ. Morrison & Co is well-placed to capitalise on it’s expertise in the energy, transport, airports and utility sectors."