From renewable power to logistical power to the equalizing power of digital fintech – check out some of the big deals that defined the first half of F2019.
1: Wind is Strong, Sun is Hot
When and Where: May 2018; Canada, United States, and Germany
The Deal: Acquisition of 49% of Enbridge’s interests in North American renewable power assets and 49% of its interests in two German offshore wind projects. Concurrently, the formation of a 50-50 joint venture to pursue future European offshore wind projects.
The Players: Enbridge is one of Canada’s largest renewable energy companies. Together, the company’s renewable energy projects (either operating or under construction) have the capacity to generate 3,639 megawatts (MW) gross of zero-emission energy [Source: Enbridge.com]
The Upshot: The deal includes 14 operating wind and solar assets in Canada, two in the United States, and construction capital to complete the Hohe See wind projects off the coast of Germany.
The Strategy: We’re expanding our power and renewables portfolio globally to ensure the CPP Fund is well-positioned for the expected energy transition that lies ahead.
2: Let’s Talk Logistics
When and Where: June 2018; Brazil
The Deal: 20% interest in the newly established Goodman Brazil Logistics Partnership to invest in prime logistics and industrial assets in Brazil’s key gateway cities.
The Players: The Goodman Group, headquartered in Sydney, Australia, is a global industrial property group that develops and manages logistics facilities, warehouses, and business parks in 17 countries. Other partners include global investors APG, First State Super and GIC.
The Upshot: The Partnership will work to deliver over one million square metres of high-quality logistics space in Brazil. Its initial portfolio will comprise four Class A warehouse logistics facilities and two development land sites located in the consolidated markets of São Paulo and Rio de Janeiro.
The Strategy: The strong fundamentals and growth prospects in Brazil and Latin America make this an attractive opportunity to expand our long-term focus in the region.
3: Technology for Equality
Where and When: June 2018; China
The Deal: US$600 million in Ant Financial, a tech company dedicated to using technology to bring the world equal opportunities.
The Players: Founded in 2014, Ant Financial is dedicated to creating an open, shared credit system and financial services platform through technological innovations. Their aim is to provide consumers and small business across the globe with safe, convenient, and inclusive financial services.
The Upshot: Funds will support Ant Financial’s continued investment in its blockchain, Artificial Intelligence, security, Internet of Things, and computing capabilities to upgrade its global technology platform for the next generation.
The Strategy: China’s growing online financial market presents meaningful opportunities for leading participants like Ant Financial. Investments like this are part of taking a long-term view that considers how innovations in technology and business models will impact industries far into the future.
4: Up for a New Challenge
Real Estate Debt
When and Where: July 2018; Australia
The Deal: A$500 million of seed lending to a newly-established fund with Challenger Investment Partners (CIP) to invest in middle-market real estate loans in Australia and New Zealand.
The Players: Challenger Investment Partners (CIP) originates and manages assets for leading global and Australian institutions, including Challenger Life. It has been an active real estate lender for over 20 years.
The Upshot: The new fund will look to provide alternative financing to owners of well-located properties in key gateway cities across Australia and New Zealand.
The Strategy: The partnership marks our first real estate debt investment in Australia and New Zealand. The deal expands our investment activities into new asset classes across Asia-Pacific, and particularly in a high-priority growth region supported by strong fundamentals.
5: Road to Somewhere
When and Where: August 2018; Australia
The Deal: Acquisition of a major stake in the WestConnex toll road project in Sydney, Australia as part of the Sydney Transport Partners consortium.
The Players: Partners include the Transurban Group, a leading operator of urban toll roads in Australia and North America; AustralianSuper, Australia’s largest superannuation fund; and Tawreed, a wholly-owned subsidiary of the Abu Dhabi Investment Authority.
The Upshot: WestConnex is the largest road infrastructure project underway in Australia. The 33-kilometre road will serve one of the fastest-growing regions in the country.
The Strategy: Investing in large-scale infrastructure projects that provide vital services to growing populations is core to our Real Assets strategy. With C$11 billion already invested across real estate, infrastructure, public equities, and direct investments in Australia, this is a key growth market for us.