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DP World partners with pension fund to form US$3.7bn investment platform

DP World partners with pension fund to form US$3.7bn investment platform
CDPQ will take a 45% share of two of DP World's Canadian terminals

DP World has teamed up with Canadian pension fund, Caisse de dépôt et placement du Québec (CDPQ) to create a US$3.7bn platform for port investments.

DP World holds a 55% share while CDPQ has the remaining 45% of the platform which will invest in ports and terminals globally (excluding the UAE) across the life cycle of the asset, with a focus on investment grade countries.

It will also invest mostly in existing assets, but with up to 25% invested in greenfield opportunities, according to a statement from the terminal operator.

The investment vehicle will be seeded with two of DP World’s Canadian container terminals, located on the Pacific Coast in Vancouver and Prince Rupert, with CDPQ acquiring a 45% stake of the combined assets for US$640m.

Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, said: “The partial monetisation of our Canadian assets further strengthens our balance sheet. The opportunity landscape in the port and terminal sector remains significant and this partnership offers us greater flexibility to capitalise on these opportunities while maintaining a strong balance sheet and retaining control.”

Michael Sabia, president and CEO of CDPQ, stated: “As a first step, we are pleased to announce two key investments in British Columbia. We look forward to leveraging our in-house infrastructure expertise and DP World’s strong track record in the port sector to deliver attractive long-term returns for our clients.”

CDPQ’s investment in the two Canadian terminals are subject to a number of customary regulatory approvals.