The Pensions Infrastructure Platform (PiP) has confirmed its involvement in the Thames Tideway Tunnel project after securing over £370m of investment commitments from UK pension schemes.
On 24 August 2015 the Bazalgette Tunnel Limited consortium, of which PiP investors through Dalmore Capital are a part, received the licence from the Water Services Regulation Authority (Ofwat) to own and finance London's £4.2 billion ‘super sewer'.
PiP chief executive Mike Weston said the project was an example of how green field projects can be suitable for pension scheme investment.
"The involvement of UK pension scheme investors in the Thames Tideway Tunnel project is fantastic news, with UK pension schemes investing over a third of a billion pounds into the project," he said. "Traditionally the construction risk carried by greenfield infrastructure projects is too high to be suitable for pension scheme investors, who are typically looking for low risk, long-term, inflation-linked returns that help meet their regular pension payment obligations. But the Thames Tideway Tunnel is a great example of how even greenfield projects can have the risk mitigated to a level acceptable to pension funds."
The Thames Tideway Tunnel is a great example of how even greenfield projects can have the risk mitigated to a level acceptable to pension funds.
He continued: "We want to see more such opportunities for UK pension scheme investors and our message to Government is clear: If Government is serious about increasing institutional investment in infrastructure then they need to ensure a long-term pipeline of opportunities is in place to give pension schemes the confidence to build their internal investment systems and capabilities, and Government must also be prepared to structure projects to deliver the low risk cash flows that pension schemes need."
The government will set up an infrastructure bank to support investment and to co-invest alongside investors including pension funds.
The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.
Estatee agent denies a shareholder’s absence from voting is an issue, finds Minerva Analytics.
In this live blog, Professional Pensions' sister title Investment Week collates all the breaking market news, analysis and opinion on equity, bond and currency movements as well as the impact of trade wars, tightening monetary policy and the Brexit negotiations....
Attractive valuations and prospects for economic recovery support small-caps