DP World partners with Quebec's Caisse to create $3.7B investment platform

Published December 4th, 2016 - 07:00 GMT
The investment vehicle will be seeded with two of DP World’s Canadian container terminals, with CDPQ acquiring a 45 percent stake of the combined assets.
The investment vehicle will be seeded with two of DP World’s Canadian container terminals, with CDPQ acquiring a 45 percent stake of the combined assets.

Dubai-based global marine terminal operator DP World said it has joined hands with Caisse de depot et placement du Quebec (CDPQ), one of North America’s largest pension fund managers, to create a C$5 billion ($3.7 billion) investment platform.

DP World will hold a 55 per cent share in the new joint venture company which will invest in ports and terminals globally (excluding the UAE), across the life cycle of the asset, with a focus on investment grade countries.

It will also invest mostly in existing assets, but with up to 25 per cent invested in greenfield opportunities, said the statement from the Dubai terminal operator.

Through this platform, DP World will share new investment opportunities and CDPQ will have the option of co-investing alongside
DP World.

The investment vehicle will be seeded with two of DP World’s Canadian container terminals, located on the Pacific Coast in Vancouver and Prince Rupert, with CDPQ acquiring a 45 per cent stake of the combined assets for $640 million, it stated.

Sultan Ahmed Bin Sulayem, the group chairman and chief executive of DP World, said: "As a global trade enabler, DP World is proud to announce the partnership with CDPQ to invest in growth opportunities in port and terminal businesses around the world."

"In CDPQ we have found a partner with shared vision who is willing to participate in the risk and reward of investing throughout the life cycle of trade-enabling assets across the globe. The partial monetization of our Canadian assets further strengthens our balance sheet," noted Bin Sulayem.

"The opportunity landscape in the port and terminal sector remains significant and this partnership offers us greater flexibility to capitalise on these opportunities while maintaining a strong balance sheet and retaining control," he added.

Michael Sabia, the president and chief executive of CDPQ, said: "Through this new investment platform with DP World, a world-class port and terminal operator, CDPQ will have unique access to high quality transactions, and the opportunity to invest in the best port infrastructure worldwide."

"As a first step, we are pleased to announce two key investments in British Columbia. We look forward to leveraging our in-house infrastructure expertise and DP World’s strong track record in the port sector to deliver attractive long-term returns for our clients," he added.

Dubai-based Canaccord Genuity acted as financial advisor to DP World, while BMO Capital Markets played the key role for CDPQ.

 

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