08 July 2010

Successful purchase of stake in Flinders Ports

In June 2010 ICG on behalf of Diversified Infrastructure Trust, together with EquipSuper and Local Super acquired 21.4% of Flinders Ports from two European based parties.

  • + In June 2010 Infrastructure Capital Group (ICG), on behalf of Diversified Infrastructure Trust (DIT), together with EquipSuper and Local Super (the Consortium), acquired 21.4% of Flinders Ports from two European based parties
  • + The acquisition provides DIT with an exposure to a core South Australian infrastructure asset with long-term predictable cash flows and a range of highly attractive growth opportunities
  • + This investment provides DIT with further diversification in its portfolio of investments in respect to asset sector, location and breadth of investments

Flinders Ports owns and operates seven commercial ports in South Australia, being Port Adelaide, Port Lincoln, Port Giles, Klein Point, Thevenard, Wallaroo and Port Pirie. It provides a range of port-related services and infrastructure for container, bulk and break bulk cargoes, port management services, shipping infrastructure management and port consultancy services.

Flinders Ports was established as the result of the privatisation of SA Ports in 2001 and enjoys the benefit of a 99-year lease with the South Australian Government. It has a large and diversified blue chip customer base, including oil companies, car producers, cement plants, agricultural distributors and mining companies. Together these ports are estimated to currently handle in excess of 90% of South Australia’s exports.

This acquisition provides DIT with exposure to a high quality infrastructure asset that has performed very well and has achieved high levels of growth since its privatisation in 2001. The group has a very talented and well regarded management team with a proven track record in operating and developing the business and maintaining long-standing relations with customers and other stakeholders. Flinders Ports is an excellent addition to DIT’s existing portfolio that will further diversify the holdings of the Fund.