Infrastructure

infra_mini.jpgInvesting in infrastructure

Since the establishment of a dedicated Infrastructure team in 2007, we have gradually increased our portfolio to eight investments in Europe and one in the US. Our portfolio is well diversified across the energy and transport sectors.

Investment strategy

Given our very long-term investment horizon we seek returns for Allianz through cash yield and not through exits. As a long-term, buy-and-hold investor, we focus on investments that provide stable, preferably inflation-linked, cash flows over the long term. We invest in assets that provide essential services to the public and are supported by regulated or contracted revenues or a strong market position. While we primarily focus on brownfield assets with an operational track record, we can also consider greenfield projects on a selective basis. We take construction risk under appropriate contractual or regulatory protection but no development risk.

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As part of a leading international insurance company, we pursue investment opportunities globally, focusing on countries with a well-established fiscal and regulatory track record. Our focus lies on developed countries, but we are selectively also considering emerging markets.

We seek significant minority or joint control equity stakes of up to 50% and typically partner with like-minded, reputable investors to acquire controlling equity stakes of up to 100%. We look for strong financial and industrial partners as well as a clear alignment of interest between the partners. Furthermore, we are an active investor, focusing on professional oversight but without involvement in the day-to-day management of the businesses we acquire.

“We invest in projects and businesses that deliver attractive long-term cash yields with limited down-side risk.”

Christian Fingerle, CIO and Head of Infrastructure

Expertise

Formed over several years, the investment team benefits from a diverse skill-set and cultural background coupled with long-term investment experience. The team is based in London and Munich. It works seamlessly together on transactions across the globe and is supported by a network of dedicated senior advisors and the global Allianz network. The entire team has a strong network consisting of industrial companies, politics, regulators and other infrastructure investors.

Portfolio

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Delgaz Grid

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Delgaz Grid (former E.ON Distribuţie România) owns and operates a gas distribution pipeline system of over 20,000 km as well as an electricity distribution grid of over 80,000 km. It is serving about 3 million customers and is a core infrastructure asset in Romania operating under a well-established regulatory framework.

Location: Romania

Investment Year: 2016

Ownership stake: 30%

Co-Shareholders: E.ON (56.5%), Romanian Ministry of Energy (13.5%)

Delgaz Grid

Gas Connect Austria (GCA)

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Gas Connect Austria (GCA) owns and operates critical gas infrastructure for the transport of natural gas to and from Austria with an approximately 900-km-long natural gas high-pressure pipeline grid. Besides the marketing of natural gas transport capacity, the company maintains the smooth and reliable operation of a modern, high-performance network. Due to its central geographic location and well-connected pipeline network GCA is a major turntable and central hub for the transmission of natural gas in Europe. GCA plays a key role in the natural gas supply for Austria and neighboring countries including Germany, France, Hungary, Slovakia, Slovenia and Croatia.

Location: Austria

Investment Year: 2016

Consortium Ownership stake: 49%

Consortium partners: Snam S.p.A.

Gas Connect Austria (GCA)

Tank & Rast

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Tank & Rast is Germany's largest and leading owner and concessionaire of a network of motorway service areas providing essential services to 500 million visitors each year. The Tank & Rast network comprises around 390 service areas, approximately 350 petrol stations and some 50 hotels on Germany's highway network. ACP and its consortium partners are committed to support Tank & Rast's strategy in continuing the improvement of the product and service offering along the German motorways including the nationwide roll-out of e-charging facilities.

Location: Germany

Investment Year: 2015

Ownership stake: 25%

Consortium partners: Borealis Infrastructure Management Inc., Infinity Investments SA, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), MEAG, Munich Re (Group)'s asset manager and CIC Capital

Tank & Rast

 

Thames Tideway Tunnel

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The Thames Tideway Tunnel is a newly constructed, 25km-long sewage system running through central London. In 2015 ACP and our consortium partners received the license to own and finance London's Thames Tideway Tunnel, which is required to tackle a significant environmental problem – the discharge of untreated sewage into the tidal River Thames. The new transfer and storage tunnel will significantly increase the capacity in the London sewerage network and will create a cleaner, healthier River for Londoners.

Location: United Kingdom

Investment Year: 2015

Ownership stake: 34.26%

Consortium partners: Amber Infrastructure Group, Dalmore Capital Limited and DIF

Thames Tideway Tunnel

 

Queenspoint  

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ACP acquired interests in three concession assets, two granted in connection with the Metro Line 9 in Barcelona and one in connection with the Metro Ligero Oeste commuter rail line in Madrid. All assets are fully operational and granted under long-term concessions with a remaining weighted average life of 26 years. These three concessions are essential to the mobility plans of both Madrid and Barcelona, increasing public transportation options for citizens and commuters in previously underserved areas.

Location: Spain

Investment Year: 2015

Consortium Ownership stake: 36.5% in two series of stations on Line 9 of the Barcelona metro system; 18.7% in Metro Ligero Oeste - a light railway line in Madrid; both owned jointly with consortium partners

Consortium partners: Bastion Infrastructure Group

Metro Ligero Oeste
Railway Technology

Colchester Garrison  

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Colchester Garrison is a major garrison located in Essex, Southern England. We have a 35 year concession to design, build, finance and operate the new Garrison facility at for the UK Ministry of Defence. Today, the Garrison provides fully serviced accommodation, training, education and welfare facilities for the 3,500 military and 700 civilian personnel who live and work at the Garrison.As the home of the 16 Air Assault Brigade, the British Army's rapid reaction force, Colchester Garrison provides an important service to a critical part of the UK's military capability.

Location: United Kingdom

Investment Year: 2015

Consortium Ownership stake: 56%

Consortium partners: UK's Pensions Infrastructure Platform (PIP) PPP Equity Fund, which is managed by Dalmore Capital

 

Porterbrook  

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Porterbrook is one of the three major rolling stock leasing companies in the UK. It owns a diverse portfolio of passenger and freight rolling stock and leases this stock to train and freight operating companies in the UK under long-term lease agreements. It manages a modern fleet of approximately 5900 passenger and freight vehicles and its portfolio represents approximately one third of Britain's passenger rolling stock fleet. 
Porterbrook's trains fulfil a critical public service function for commuters and travelers in the UK and are a vital part of the UK's infrastructure.

Location: United Kingdom

Investment Year: 2014

Ownership stake: 30%

Consortium partners: Alberta Investment Management Corporation, Hastings Funds Management and EDF Invest

Porterbrook

 

NET4GAS

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NET4GAS is the sole owner and operator of the gas transmission system in the Czech Republic. NET4GAS operates more than 3800 km of high-pressure pipelines that supply the Czech domestic market and transit natural gas through the Czech Republic to markets in Central and Western Europe. The NET4GAS network represents essential infrastructure for the transport and supply of gas to all Czech domestic customers. Through interconnections to neighboring countries and fully reversible network NET4GAS helps to increase energy security not just in the Czech Republic but for the whole CEE region.

Location: Czech Republic

Investment Year: 2013

Ownership stake: 50%

Consortium partners: Borealis Infrastructure

NET4GAS 

 

Gassled

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Gassled owns the bulk of the natural gas pipeline infrastructure on the Norwegian Continental Shelf. It includes approximately 8000km of natural gas pipelines to process, transport, and export to mainland Europe and the U.K. Gassled is a strategic asset in the Northwestern Europe energy landscape, which operates under a long term license until December 2028. As the owner of the vast majority of the gas transportation infrastructure between Norway and the rest of Europe, Gassled is vital in ensuring security and diversity of gas supply to the UK and Continental Europe. Allianz is invested in Gassled through Silex Gas Norway and Solveig Gas Norway.

Location: Norway

Investment Year: 2011

Ownership stake: 14%

Consortium partners: Canada Pension Plan Investment Board (CPPIB), and Infinity Investments SA, a wholly owned subsidiary of the Abu Dhabi Investment Authority

Silex Gas
Solveig Gas

 

Chicago Parking Meters (CPM)  

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CPM operates all of the on-street metered parking in Chicago pursuant to a 75-year concession. The concession grants CPM an exclusive right to operate, manage, maintain, rehabilitate and collect revenues derived from approximately 36,000 parking spaces located throughout Chicago. Since the start of the concession in 2009, CPM has made significant investments in system modernization and customer service improvements, which has resulted in one of the most sophisticated parking systems in the country.

Location: United States

Investment Year: 2009

Ownership stake: 25%

Consortium partners: Morgan Stanley Infrastructure Partners, Abu Dhabi Investment Authority

Chicago Meters