Two New South Wales superannuation funds are speaking with Nick Greiner as the chairman of Infrastructure NSW puts together a 20-year infrastructure plan for Australia’s most populous state.
Greiner did not name the funds but said if they are to invest in infrastructure the “risk-reward parameter” must suit them.
He said governments must “contain risk” if they are to make infrastructure attractive to funds.
Government must “package projects” to make infrastructure “reasonable” investments, the former NSW Premier said at a Financial Services Council luncheon in Sydney.
Superannuation funds have allocated about $65 billion to infrastructure investments, according to Karen Chester, a partner at consultant Mercer. With leverage the funds’ investments may represent about $190 billion of infrastructure assets, said Chester.
Forecasts suggest $120 billion of equity may be invested in infrastructure representing $340 billion of infrastructure assets by 2023, said Chester.