Download Asian Market Drives Record Investment in Unlisted

Press Release
5th January 2017
________________________________________________________________________________________________________
Asian Market Drives Record Investment in Unlisted
Infrastructure Assets in 2016
Global infrastructure projects attract an all-time high of $413bn of investment in 2016,
propelled by aggregate transaction value of $131bn in Asia
Preqin’s end-of-year update on the unlisted infrastructure deal market finds that while the number of financings in
2016 remained consistent with recent years, the aggregate deal value surpassed all previous years. In total, 1,772
deals were completed for infrastructure assets equalling $413bn, although Preqin expects these figures to rise by up
to 5% as more information becomes available. This marks an increase of 14% from the $362bn in total deal value
seen in 2015, and a sizeable increase from the aggregate deal value of $327bn recorded in 2014. The number of
transactions remained similar to the levels seen in 2015 and 2014, which saw 1,743 and 1,787 deals completed
respectively, as average asset valuations within the market continue to rise.
Asia has seen a significant push for infrastructure investment over the past few years, and saw the highest level of
financings of any region in 2016; 552 deals were completed for a record $131bn as fund managers noted the potential
for development within the region. Europe is also a prominent market for infrastructure deal activity, and the region
saw the highest number of deals (555) for a total of $97bn, while the mature infrastructure market in North America
also attracted significant levels of capital ($96bn). Given the demand for infrastructure in less developed countries, it is
perhaps unsurprising that the rest of the world saw 237 financings for $89bn, and accounts for five of the top 10
largest deals of 2016.
Other Key Infrastructure Deals Facts:
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Rise of Renewables: As the global push towards alternative energy sources continues, renewable energy has
become increasingly prominent; in 2016, renewables accounted for 42% of all deals, up from 39% in 2015
and 37% in 2013. Transport represented 25% of deals in 2016, a decline from 30% in 2015.
Deals by Project Stage: Through 2016, greenfield and secondary sites accounted for the highest proportion of
infrastructure deals, with 42% and 38% of global financings respectively. However, a fifth of all transactions
completed were for assets in the brownfield stage of development.
Deals by Value Band: As valuations and the average deal size have risen, large-cap deals have accounted for
a higher proportion of the market. Financings larger than $1bn represented 13% of infrastructure deals in
2016, up from 10% the previous year, although assets smaller than $100mn still represented the majority
(51%) of transactions in 2016.
Largest Deals: Natural resources pipelines account for four of the top 10 largest infrastructure deals in
2016, including the two largest in the UK and Indonesia. Three of the largest 10 financings were for assets in
Australia, while two were for refinery plants in Indonesia.
To access further information and analysis, please see the factsheet below:
Comment:
“Infrastructure projects remain central to the development of countries across the world, and as a result the asset
class has become home to a diverse range of firms and institutional investors. The constant need for, and evolution of,
modern transport systems, alternative power sources and technological structures make the industry an attractive
proposition. Moreover, Donald Trump’s infrastructure programme could spur a wave of private investment in the US
as participants look to capitalize on the potential for subsidized ownership.
However, as demand for infrastructure has increased over the last decade, greater competition for assets –
particularly secondary stage assets in developed economies – has pushed valuations upwards. Low interest rates
have also contributed to higher pricing demands, as leverage becomes cheaper, which will be a concern for firms. As
such, it will be interesting to see if the pace of the market can be sustained moving into 2017 or if managers struggle
to deploy their available capital in attractive projects.”
Tom Carr – Head of Real Assets Products, Preqin
New York
London
Singapore
San Francisco
Hong Kong
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+65 6305 2200
+1 415 316 0580
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______________________________________________________________________________________________
Note to Editors:

Preqin is spelled without the letter ‘U’ after the ‘Q’, the company name being an amalgamation of the former name, Private
Equity Intelligence.
About Preqin:
Preqin is the leading source of information for the alternative assets industry, providing data and analysis via online databases,
publications and bespoke data requests.
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are regularly quoted by the financial press. For more information, please visit: www.preqin.com
For more information, please contact: Tom Carr +44 (0)20 3207 0355 or [email protected]
For general press enquiries, please contact: William Clarke +44 (0)20 3207 0265 or [email protected]
New York
London
+1 212 350 0100
+44 20 3207 0200
Singapore
San Francisco
Hong Kong
+65 6305 2200
+1 415 316 0580
+852 3958 2819
www.preqin.com / [email protected]
Manila
DOWNLOAD THE DATA PACK
2016 INFRASTRUCTURE DEALS
5 JANUARY 2017
Fig. 1: Global Annual Infrastructure Deals, 2007 - 2016
Fig. 2: Infrastructure Deals in 2016 by Region
2,000
600
555
1,750 1,787 1,743 1,772
90%
500
1,519 1,550
1,600
400
1,200 1,106 1,099 1,133
1,000
No. of Deals
300
800
Aggregate Deal
Value ($bn)
237
600
400
253
307
177
200
196
284
255
362
327
276
413
200
131
97
96
100
70%
60%
50%
1% 1%
16%
16%
1% 1%
10%
11%
12%
8%
8%
11%
1% 1%
13%
Other
12%
6%
10%
21%
Utilities
30%
23%
25%
Energy
Social
30%
37%
40%
39%
42%
2008
2009
2010
No. of Deals
2011
2012
2013
2014
2015
2016
0
0%
North America
Aggregate Deal Value ($bn)
Europe
Asia
Rest of World
Source: Preqin Infrastructure Online
Fig. 4: Infrastructure Deals by Value Band, 2013 - 2016
2013
9%
10%
10%
9%
10%
9%
80%
30%
27%
25%
Total value of infrastructure deals announced in
2016.
8%
28%
50%
Greenfield
$500-999mn
38%
42%
$100-499mn
Brownfield
52%
53%
56%
51%
Less than
$100mn
Secondary Stage
555
Number of deals announced in Europe in 2016,
the highest of any region.
40%
30%
2016
Source: Preqin Infrastructure Online
$413bn
13%
60%
2015
Fig. 5: Infrastructure Deals in 2016 by Project Stage
$1bn or More
70%
2014
Source: Preqin Infrastructure Online
100%
90%
Transport
Renewable Energy
10%
2007
Telecoms
40%
20%
89
0
Proportion of No. of Deals
2%
2%
80%
428
1,325
1,400
100%
552
Proportion of No. of Deals
1,800
Fig. 3: Infrastructure Deals by Primary Industry, 2013 - 2016
20%
10%
$13bn
20%
Value of Turban Refinery Plant, the largest deal
announced in 2016.
0%
2013
2014
2015
2016
Source: Preqin Infrastructure Online
1
Source: Preqin Infrastructure Online
© Preqin Ltd. 2017 / www.preqin.com
DOWNLOAD THE DATA PACK
2016 INFRASTRUCTURE DEALS
5 JANUARY 2017
Fig. 6: 10 Largest Infrastructure Deals Announced Globally in 2016
Asset
Location
Primary Industry
Investor(s)
Deal Size (mn)
Stake (%)
Deal Date
Tuban Refinery Plant
Indonesia
Natural Resources
Refineries
PT Pertamina, Rosneft
13,000 USD
100
Apr-16
Ausgrid
Australia
Power Distribution
AustralianSuper, IFM Investors
16,000 AUD
50
Oct-16
ITC Holdings Corp.
US
Power Distribution
Fortis Inc.
11,300 USD
100
Feb-16
India
Defence
Dassault Systemes, Reliance Infrastructure
7,900 EUR
100
Sep-16
Australia
Seaports
Future Fund, Global Infrastructure Partners, OMERS, QIC Global
Infrastructure
9,700 AUD
100
Sep-16
Mexico
Mobile Phone Networks
Axtel, CDPQ, CKD-IM, Grupo Multitel, IFC Asset Management Company,
International Finance Corporation, Invex, Megacable, Morgan Stanley
Infrastructure, Unidentified Investor/s
7,000 USD
100
Nov-16
National Grid's Gas Distribution Networks (UK)
UK
Natural Resources
Pipelines
Allianz Capital Partners, Amber Infrastructure Group, China Investment
Corporation, Dalmore Capital, Hermes Investment Management, Macquarie
Infrastructure and Real Assets (MIRA), Qatar Investment Authority
5,400 GBP
61
Dec-16
Nova Transportadora do Sudeste Gas Pipeline
Brazil
Natural Resources
Pipelines
BC Public Service Pension Plan, Brookfield Asset Management, China
Investment Corporation, GIC
5,200 USD
90
Sep-16
Cilacap Refinery Plant
Indonesia
Natural Resources
Refineries
PT Pertamina, Saudi Aramco
5,000 USD
100
May-16
WestConnex M5 East Tunnel (Stage 2) PPP
Australia
Transport
ACS Group, CIMIC Group, Samsung C&T Corporation
5,000 USD
100
Jun-16
Dassault Reliance Aerospace
Port of Melbourne
Red Compartida Contract
Source: Preqin Infrastructure Online
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© Preqin Ltd. 2017 / www.preqin.com