Under the joint venture, the complementary skills and capabilities of each organisation will combine to invest and develop infrastructure projects. This includes sharing bid costs and leveraging the client relationships from both organisations. 

The market outlook for development of privately financed public service infrastructure is extremely strong in both the United Kingdom and the wider European Union.  The major hospital sector is one of the most substantial components of the UK Government’s extensive PFI programme and PPP roads are the focus of new spending programmes being initiated by a number of other European governments. 

This is reflected in the emergence of new procurement pipelines in a number of countries and is enabling John Laing to access new opportunities in its chosen sectors through the formation of consortia appropriate to the markets and sectors involved. 

John Laing already enjoys a leading position in the UK PFI/PPP market. The company’s portfolio includes 37 signed projects spread across the health, education, police, defence, roads and rail sectors. The company has 15 preferred or sole positions including 4 in the sectors in which the joint venture will be active.

The Commonwealth Bank is a major financier and investor in all sectors of the Australian infrastructure and PFI/PPP market. It has approved the investment of £120 million in 10 infrastructure projects and underwritten unlisted equity of £120 million for seven transactions. Colonial First State, a wholly owned subsidiary of the Commonwealth, currently manages over £300 million in unlisted infrastructure assets on behalf of super funds life companies and unit trusts, and is also a major investor in listed infrastructure companies.

Commenting on the joint venture, Andy Friend, Chief Executive of John Laing, said

“The Commonwealth Bank has played a leading role in the development of the well-developed Australian infrastructure market. It has very significant expertise in terms of project and structured finance and an enviable track record of equity investment.  We are very pleased to welcome the Commonwealth Bank as a partner as they expand in the European sphere.  For John Laing, this co-investment partnership is an important building block in assembling a wider platform for growth at a time of significant market opportunity.”

Michael Katz, Commonwealth Bank Group Executive of Premium Business Services, added

“In developing our infrastructure business in the UK and Europe, it is important that we work with successful organisations to build a long term sustainable partnership. John Laing is a leading player in the European infrastructure market and has a proven track record of successful investment. We are delighted to be working with the talented team at John Laing and I am confident that through the combination of our respective skills and expertise, we will be well positioned to take a significant role in future infrastructure programmes.”

ENDS

There will be an analysts’ presentation at 10.00am today at the Presentation Suite, Floor 24, Tower 42, 25 Old Broad Street, London, EC2 1HQ.

Enquiries:

Notes to Editors

About John Laing

John Laing is the UK’s listed market leader in PPP/ PFI infrastructure projects.  It is currently invested in 37 PPP/ PFI projects in the rail, roads and accommodation sectors, 21 of which are fully operational. Preferred or sole bidder status has been reached on 15 further projects of which up to 6 are expected to reach financial close in the second half of the financial year.

Laing’s portfolio currently includes road projects such as the Severn River Crossings, the UK M40 DBFO road, the E39 road in Norway and the A55 in Wales. Laing also owns Chiltern Rail, one of the UK’s most successful train operating companies. Accommodation investments include the MOD main building, two police firearms training centres, four hospitals, two LIFT healthcare projects and six schools projects.

About Commonwealth Bank of Australia

The Commonwealth Bank was one of the first major financers to use its considerable balance sheet and expertise to invest in private infrastructure projects, including equity participation in Australia’s first two toll roads in 1989.

The Bank is one of the largest providers of debt finance in Australia, having arranged and structured in excess of $7.5 billion in infrastructure and project financing and $1 billion in subordinated debt in Australia.

The Commonwealth Bank’s expertise is focused on optimising the client’s capital structure, balance sheet and related financial flows through its diverse capabilities in project finance, syndication, equity underwriting, financial markets products, structured finance and mezzanine finance.

The Project and Infrastructure team delivers value to clients through its depth of industry specialisation and knowledge in high growth infrastructure market segments. Specialists offer integrated strategic initiatives in taxation, accounting, risk, capital management expertise and technology to create solutions to clients’ financing needs.

The team has expertise in key infrastructure industry segments including:

• Transport infrastructure – equity financier, arranger and underwriters to key infrastructure assets including toll roads, airports, sea-ports and rail
• Private and Public Partnerships (PPPs) - provides advisory and debt funding on social and economic infrastructure for the community, combining significant expertise in infrastructure financing together with experience in government financing and public asset management.

Colonial First State operates through its affiliate First State Investments in the UK