Simplicity managing director Sam Stubbs said InfraKiwi would be looking to buy established assets in energy, water, transport, and data sectors, Photo: Supplied / Simplicity
- Simplicity sets up InfraKiwi infrastructure investment company
- Plans to own and operate key NZ assets such roads, water, power lines
- Plans to be long term owner
- Looking for other KiwiSaver funds to invest
- Aiming to list stock exchange, guaranteed NZ ownership
Innovative KiwiSaver provider Simplicity is branching out into infrastructure investment with a vow to buy New Zealand assets and keep them in New Zealand hands.
The default provider has set up a company, InfraKiwi, to be initially funded from Simplicity's schemes, but with long term plans to list on the NZX to attract more investors.
Simplicity chair Rob Everett said the country had a significant infrastructure gap and the growing amounts of money in KiwiSaver funds, along with iwi, other investment groups, and individual investors should be used for local good.
"We think matching the long-term infrastructure needs of New Zealand, with the capital New Zealanders will save, will generate stable returns for investors and promote a thriving infrastructure sector supported by much-needed jobs."
"New Zealand is now building up enough collective savings to fund most of our own infrastructure, and InfraKiwi's locally owned and controlled model provides an attractive infrastructure funding option for central and local government."
Golden share, golden returns
Simplicity managing director Sam Stubbs said InfraKiwi would be looking to buy established assets in energy, water, transport, and data sectors, holding for the long-term, and focusing on getting the best from them.
He said the Infrastructure Commission has identified projects worth $210 billion, while Simplicity has estimated as much as $295b in KiwiSaver funds would be accumulated over the next 25 years at current savings rates.
Long term investment would provide long term returns, and once the company had sufficient mass an NZX listing would be sought to attract other investment funds, and individuals, Stubbs said.
"We want its ownership to be restricted to New Zealand shareholders. With all the capital KiwiSaver schemes, Iwi and individuals have to invest, we don't think funding from offshore investors is required," he said.
The company would have a 'golden share' to ensure local ownership and continuity of structure and purpose.
There was plenty of private investment in infrastructure from private equity funds and specialists such as Infratil, but they tended to be shorter term investors than InfraKiwi planned to be, Stubbs said.
"We hope InfraKiwi will eventually become New Zealand's biggest, and most boring, company."
Simplicity has already branched out into housing with several build-to-rent and social housing projects.
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