CANADA - The Ontario Teachers' Pension Plan has upped its infrastructure investment through the US$2.4bn acquisition of four marine container terminals in North America.
The agreement was signed with Orient Overseas (International) Limited of Hong Kong and the assets will be held within the $84bn fund's infrastructure and timber portfolio.
The acquisition brought the portfolio size up to $6.5bn.
The operations acquired included New York Container Terminal, Staten Island, New York; Global Terminal and Container Systems, Inc., Bayonne, New Jersey; and TSI Terminal Systems Inc.’s Deltaport and Vanterm facilities in Delta and Vancouver, British Columbia.
“This acquisition represents solid, robust assets, has little vulnerability to market or economic vagaries,” said Jim Leech, senior vice president of Teachers’ Private Capital - the private investment arm of the pension plan.
“The assets feature a very attractive growth profile that we will support and will serve us well into the future.”
According to Leech, the investment was well priced and offered the pension plans long term cash flow. He stated OTPP would continue to invest in and expand the terminals acquired.
The further investment in infrastructure followed the recent Teachers’ Private Capital acquisition of Dynea North America - a speciality resin adhesive and paper overlays producer.
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