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.
The closure of the BT Pension Scheme (BTPS) to future accrual means 20,000 active members will move to an 'enhanced' defined contribution (DC) scheme, after the company reached a deal with the union.
In this week's Pensions Buzz we want to know what you think of the government's proposals set out in the DB white paper, which include new powers for the regulator.
The pensions watchdog has been through some testing times and is making significant changes to the way it regulates. Speaking to Stephanie Baxter, Mark Boyle takes stock and looks to the future
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.