Aurex Insights: Australia Infrastructure Investment Manajement
Australia Infrastructure Investment Management
2019 - A Year of Growth
Mounting Pressure on Australian Infrastructure
Population Expansion Fuels Action
The forecasts for Australia’s population growth estimate there to be approximately 40 million inhabitants by 2050. To ease the inevitable impact on domestic infrastructure,
the government is currently upscaling its commitment to deployment across social infrastructure, transport and utilities at an aggressive rate.
It is estimated that aggregate investment in projects greater than AU$50 million will be AU$77 billion this year, a 200% increase from 2016. This rise aims to support the population growth of major cities like Sydney and Melbourne, which are expanding at almost 2% and 2.5% annually, creating a potential gap in infrastructure. The shortfall is estimated to be almost 1% of GDP at the moment.
Given the superannuation funds introduction of compulsory engagements, Australia also has naturally become a frontrunner in private infrastructure investment. With a spend of almost AU$1,350 per capita on transport in 2019, Australia ranks second in terms of infrastructure spending across OECD countries.
Infrastructure, therefore, is a significant contributor to the economy – from jobs to exports and tourism.
Opportunities for Candidates
Key Infrastructure Projects
Infrastructure Australia has identified AU$55 billion worth of projects on its national priority list over the next 15 years.
- Brisbane Metro Inner-City Public Transport Network (AU$730m).
- Gold Coast M1 Pacific Motorway Upgrade (AU$197.5m).
New South Wales
- Sydney Metro – 31 Metro Stations, 66km Rail Line in three stages: North-west 2019; City and South-west 2024; Metro West Sydney–Parramatta Investigation (AU$12b).
- WestConnex Road, Interchange and Tunnel Projects 2015–2024 for Parramatta Road, M5 and North-south Corridors (AU$16.6b).
- Western Sydney Airport Badgerys Creek Stage 1 Single Runway, capacity 10 million passengers per year ($5.3b). Projected cost over three stages to 2064. (AU$38b).
- Adelaide North-South Corridor (AU$1.4b).
- Gawler Rail Line Electrification (AU$220m).
- Joy Baluch Bridge Duplication (AU$160m).
- Metronet Includes Thornie-Cockleburn Rail Link and Yanchep Rail Extension (AU$1.1b).
- Tonkin Highway (AU$580.5m).
- Bunbury Outer Ring Road (AU$560m).
- Roe Highway (AU$144m).
- Mitchell Freeway Extension (AU$107.5m).
- Bindoon Bypass (AU$220m).
- Myalup-Wellington Water Project to reduce salinity in Wellington Dam, the state’s second-largest reservoir (AU$396m).
Australia Capital Territory
- Light Rail 12km Link northern Canberra to Gungahlin – Completion 2019 (AU$1.3b–$1.6b).
- North East Link (AU$15.8 b).
- West Gate Tunnel (AU$6.7b).
- Melbourne Airport Rail Link. Construction begins 2022. (AU$5b).
- Metro Trains 65 high-capacity trains for the network. (AU$2.3b)
- Murray Basin Rail Project Remove capacity constraints, standardise gauge and increase load limits. Forecast to replace 20,000 truck trips from an area that grows 70 per cent of the state’s grain (AU$435m+).
- Darwin Regional Water Supply Dams – water supply, distribution, consumption. Completion 2025.
- Darwin City Deal investment in Education and Civic Precinct (AU$200m).
- Central Arnhem Highway Upgrade (AU$180m).
- Buntine Highway Upgrade (AU$100m).
- Hobart Science and Technology Precinct. Completion 2021 (AU$400m).
- Bass Highway Upgrade (AU$400m).
- Bridgewater Bridge Replacement (AU$461m).
- Tasmanian Rail Freight Revitalisation (AU$60m).
- Scottsdale Irrigation Scheme (AU$24.5m).
Recent Market Moves
Infrastructure Australia has identified AU$55 billion worth of projects on its national priority list over the next 15 years.Given the demand for infrastructure and investment opportunities increasing domestically, we look back on the moves over the last year to see who has been growing their origination and execution capabilities to meet capital deployment demands.
Equity/Debt/PPP/Greenfield – Infrastructure Investors
- Michael Thompson left IFM Investors and joined AMP Capital, in Melbourne, as Director.
- Katherine Todd left Challenger Limited and joined AMP Capital, in Sydney, as Director of Strategy.
- Daniel Walters left Morgan Stanley and joined AustralianSuper, in Melbourne, as Senior Investment Director, Infrastructure.
- Andrew Jennings left QIC and joined KKR & Co. Inc., in Sydney, as Director.
- Mark McArdle left QIC and joined H.R.L. Morrison & Co, in Sydney, as Investment Director.
- Lorah Zhao, ex Prostar Capital, has joined Macquarie Infrastructure & Real Assets as an Executive.
- Brian Phan, ex RBC Capital Markets, has joined Infrastructure Capital Group as Associate.
- Grace Harnwell, ex Macquarie, has joined Cbus’ Infrastructure Investment team as an Investment Associate in Melbourne.
- Diana Callebaut left CBUS Super Fund and joined TCorp, in Sydney, a head of Infrastructure Investment.
- Jasmin Jenkins left Macquarie Group and joined Clean Energy Finance Corporation, in Sydney, as Director.
- Charles Fung left Planum Partners and joined DIF Capital Partners, in Sydney, as Associate Director.
- Karen Wells left Port of Brisbane and joined Warada Capital, in Sydney, as Executive Director.
- Karen Wells left Intergen Property Group and joined Warada Capital, in Sydney, as COO.
- Damien Ng left ANZ and joined Brookfield Asset Management to launch Infrastructure Mezz debt, in Sydney, as Senior Vice President.
- Nicole Miller left EY and joined Infrastructure Capital Group, in Melbourne, as Investment Associate.
- May Yewdall left First State Investments and joined HRL Morrison & Co, in Australia, as Investment Manager.
- Andrew Kosasih left Deutsche Bank and joined Macquarie Group, in Sydney, as Senior Manager.
- Antonio Calabrese left KPMG Australia and joined ICAM Funds, in Adelaide, as Head of Infrastructure Portfolio Management.
- Melannie Pyzik, ex QIC, has joined Argo Infrastructure Partners as a Managing Director.
- Kim Nguyen, ex Hastings, has joined Foresight Group as Head of Australia.
- Richard Strang, previously at PWC Brisbane, has joined AustralianSuper as an Investment Analyst in Melbourne.
- Stuart Bousfield left KPMG Australia and joined PGGM Investments, in Sydney, as Investment Manager.
- Melannie Pyzik left QIC and joined Argo Infrastructure Partners, in Sydney, as Managing Director.
- Steven Hong left Global Infrastructure Hub and joined Castalia, in Sydney, as Director.
- Iain Wood from the Clean Energy Finance Corporation joins Warada Capital on a secondment, in Sydney, as Associate Director.
M&A/Project Finance/Debt/PPP - Infrastructure Advisors
- Timothy Foy left RBC Capital Markets and joined Jeueries, in Sydney, as Head of Infrastructure.
- Jason Date, ex EY, has joined Investec in their Power and Infrastructure Finance team.
- Emily Mussen left Modano Services Australia and joined Deloitte Australia, in Melbourne, as Director.
- Timothy Kok left Quentin Ayers and joined National Australia Bank, in Sydney, as Associate Director.
- Stephen So left IDA Property Group and joined Plenary Group, in Melbourne, as Associate Director.
- Sub Mukherjee left Commonwealth Bank and joined Westpac Institutional Bank, in Sydney, as Associate Director (Project Finance).
- Grant Crene, ex NAIF, has started at ING as a Director, Infrastructure Finance Asia Pacific.
- Sam Struthers, ex Commonwealth Bank, has joined MUFG as Associate, Project Finance.
- Diana Shmulburd left Efic and joined Natixis Australia Pty Limited, in Sydney, as Executive Director.
- Surya Raviganesh left Global Infrastructure Partners and joined JPMorgan, in Melbourne, as Vice President.
- Sandra Prosolupova left Infrastructure and Project Financing Agency and joined John Holland, in Sydney, as Project Finance Manager.
- Lillee Pang left Liverpool Partners and joined Mizuho, in Sydney, as Associate Director.
- Eugen Lim left Morgan Stanley and joined UBS Investment Bank, in Melbourne, as Director.
- Brian Wong left Westpac Institutional Bank and joined Commonwealth Bank, in Sydney, as National Associate Director.
- Cameron Bailey, ex Capella Capital, has joined Macquarie Capital as Associate, Infrastructure.
- Rasik Makan left EY and joined Capella, in Sydney, as Analyst.
- Matthew Roper left NAB and joined Capella, in Melbourne, as Analyst.
- Errol Schultz, left NAB and joined MUFG, in Sydney, as Director.
- Shyamal Chand re-joins RBCCM as a Director, Infrastructure.
- Isami Morris left Performance Designed Products LLC and joined Industrial and Commercial Bank of China, in Sydney, as Head of Project and Infrastructure Finance.
- Antony Steinberg left Goldman Sachs and joined RBC Capital Markets, in Sydney, as Managing Director.
- Marcus Loomes left Citi and joined Commonwealth Bank, in Sydney, as Director – Corporate Finance.
- Ian O’ Keeue left Projects + Infrastructure and joined Infrastructure and Project Financing Agency, in Sydney, as Director.
- Brian To, ex NSW Treasury, has started at NAB as a Senior Associate in their Project Finance team.
- Jan Gabrynowicz left Commonwealth Bank and joined SMBC, in Sydney, as First Vice President.
- Mark Schmaman, ex Clean Energy Finance Corporation, has started at RBC’s Investment Banking Team.
- Ben Way left Credit Suisse and joined RBC, in Sydney, as Director.
- Peter Tibballs left EY and joined Bank of China – Australia, in Melbourne, as Executive Director.
- Shaun Clarimonde Yu left EY and joined Grant Samuel, in Sydney, as Manager.
- Louis Chu left The Carlyle Group and joined Deutsche Bank, in Sydney, as Vice President.
- Tina Haung left Plenary Group and joined National Australia Bank, in Sydney, as Associate Director.
- Luke Hogan, ex PWC, has joined Plenary Group as an Analyst.
- Will Reeves, ex PWC Senior Consultant, has joined StepStone as an Analyst.
- David Ranken left MMG and joined Capella, in Melbourne, as Manager.
- David Roberts left Piperhouse Advisory and joined MUFG, in Sydney, as Deputy Head of Advisory.
APAC Infrastructure & Energy Team
If you are interested in understanding more about the trends and moves presented in this market review or future opportunities across the Infrastructure Investment Management industry, please do not hesitate to connect with our specialist team.