AMP Capital will seek to raise 1 billion euros to invest in Irish infrastructure and has hired David Rees to co-head asset management at its London-based European direct infrastructure investment team.
Rees, who worked at network energy company National Grid, will have joint responsibility for European infrastructure asset management with Rob Verrion. Both men report to AMP Capital head of infrastructure Europe Boe Pahari.
Rees “has a great CV. Knew the team already and adds immediate value,” says Warwick Mancini, head of investment specialists for unlisted assets at AMP Capital.
AMP Capital has about 10 people working in its European direct infrastructure investment team that manage about $1.9 billion in assets through a number of funds. The company seeks to invest in roads, railways, ports and the power industry that may generate as much as a 12 percent return per annum.
Mancini says there are “good opportunities” to invest in European infrastructure assets including those in Italy and Spain although he is staying clear of Greece.
AMP Capital is analysing transmission and distribution power networks that may be for sale such as power lines that link offshore wind farms to onshore transmission centres. The company is also looking at transport infrastructure as Europe has significant plans to bolster connections between its roads, ports and railways.
Last year Ireland’s National Pension Reserve Fund appointed AMP Capital an infrastructure fund manager with a mandate to invest in Irish infrastructure.
AMP Capital may raise as much as 1 billion euros for its Irish infrastructure investments, says Mancini. It already has about 300 billion euros after capital commitments by the National Pension Reserve Fund and Irish Life.
Ireland may sell as much as 2 billion euros of infrastructure assets to pay back money it owes to the European Central Bank and the International Monetary Fund. These assets are what AMP Capital may buy with the fund.