1 |
Media Release
6 June 2024
Future Fund and QIC complete acquisition of interest in ConnectEast’s EastLink toll
road, Victoria’s largest toll road network
The Future Fund and QIC today announced they had reached financial close for an interest in the
EastLink toll road network sold by New Zealand Superannuation Fund and Teachers Insurance and
Annuity Association of America, advised by its investment advisor Nuveen Infrastructure.
The transaction comprises a 19.8% interest in Connect East Group, owner of the largest toll road
network in Victoria with a 39km toll road (EastLink) and a 1km bypass (Ringwood Bypass).
EastLink is the only major north-south transport artery in Melbourne’s east, connecting the Eastern,
Monash, Peninsula Link and Frankston freeways. An average 250,000 vehicles, including 50,000
commercial vehicles use the toll road daily.
The Future Fund, Australia’s sovereign wealth fund, has a long track record of direct investment in
Australian infrastructure, including significant interests in some of Australia’s largest transport assets.
The Fund takes an active role in the governance of these investments, with a view to being an
effective long-term steward of capital.
QIC has a long-established relationship with Future Fund and will manage this investment on their
behalf, leveraging its long-held experience in the transport sector.
QIC Infrastructure’s other transport infrastructure investments include the NorthWestern Roads Group
(Westlink M7 and NorthConnex), Port of Melbourne and Port of Brisbane. QIC is also currently
assisting the Queensland government in developing a feasibility study for the Gympie Road Bypass
Tunnel.
Quotes attributable to Ben Samild, Chief Investment Officer for the Future Fund:
“This is the Future Fund’s first direct investment in an Australian toll road and is in line with our
strategy to seek more Australian dollar exposures.
“Infrastructure assets such as Eastlink provide reliable long-term returns and help to protect the
portfolio from sustained higher inflation and interest rates.
“The Future Fund has a long track record of investing in Australian infrastructure, with more than
A$11billion held in assets including Melbourne Airport, Perth Airport, Port of Melbourne, Canberra
Data Centres, Amplitel, OneFortyOne Plantations and Tilt Renewables.
Quotes attributable to James Fraser-Smith, Director Infrastructure and Timberland for Future
Fund:
“We are very pleased to have secured an investment in this high-quality Victorian transport asset.
“Eastlink is a mature toll road and a key part of Melbourne’s road network, providing mobility in a high-
use corridor.
“This investment is a valuable addition to the Future Fund’s infrastructure holdings and will help us
deliver our investment mandate. We look forward to working constructively with the other
shareholders and management to deliver long-term, sustainable outcomes for our stakeholders.
2 |
Quotes attributable to Ross Israel, Head of Global Infrastructure, QIC:
“This investment is another demonstration of our commitment to the transport sector, a key focus
area in our sector centric, thematic based investment strategy which also includes Energy and
Utilities, and Social and Healthcare infrastructure.”
“QIC Infrastructure has a long track record in the transport sector including across toll roads, airports,
ports and maritime freight. We will leverage this experience from managing investments in
Queensland Motorway Limited, which QIC held for four years and divested in 2014 and NorthWestern
Roads Group, to responsibly manage EastLink on behalf of the Future Fund.”
“This latest investment increases QIC’s Infrastructure’s transport sector investments under
management globally to A$13.2 billion.”
Quotes attributable to Nicola Palmer, Partner, Head of Transport Origination, QIC:
“QIC’s deep industry experience and proud history of working alongside key stakeholders to bring
forward the development of public infrastructure, were important elements in partnering with Future
Fund and securing this deal.”
“Our significant Australian infrastructure footprint, deep sector knowledge and relationships, and local
on the ground presence, coupled with our thematic sector centric approach position us well and
enable us to identify opportunities and proactively unlock them quickly.”
“We are looking forward to applying our international expertise and track record in Australian roads
infrastructure to Horizon Roads together with the Future Fund and alongside Horizon Roads
management and existing investors.”
Ends
For more information:
Susan Collins scollins@qic.com + 61 415 961 621
Andrew White, Andrew.White@futurefund.gov.au +61 437 206 436
About the Future Fund
The Future Fund is Australia’s Sovereign Wealth Fund, investing for the benefit of future generations
of Australians. The Future Fund is the Commonwealth Government’s largest financial asset and
bolsters the country’s credit rating. The Future Fund’s investment mandate is to achieve an average
annual return of at least CPI +4% to 5% per annum over the long term, with an acceptable but not
excessive level of risk. As at 31 March 2024, Future Fund had total assets under management of
over $223bn, with a global infrastructure portfolio in excess of $21bn. The Fund has a strong track
record of supporting its assets and management teams, through good governance, active
engagement on strategic initiatives and a long-term focus on sustainability.
About QIC
QIC is a long-term specialist manager in alternatives offering infrastructure, real estate, private
capital, private debt, natural capital, liquid strategies and multi-asset investments. It is one of the
largest institutional investment managers in Australia, with A$111bn (US$72bn) in funds under
management. Headquartered in Brisbane, Australia, QIC also has offices in Sydney, Melbourne,
Singapore, New York, San Francisco and London. QIC Infrastructure is a long-term infrastructure
investor with an established international platform, an active management approach and a proven 17-
year track record. With an international team of 84 professionals across five offices, QIC Infrastructure
manages A$33.9bn (US$22.1bn) across 22 international direct investments and has realised in
excess of A$15.2bn back to its clients. (as at 31 March 2024)
