Asia and Rest of World Infrastructure Deals – January 2013

by Stephen Yates

  • 03 Jan 2013
  • INF

The number of annual infrastructure transactions in Asia and Rest of World regions grew significantly between the period 2002 to 2011, with 16 transactions taking place in 2002, in comparison to the 90 deals in 2011. However, the years 2008 to 2010 witnessed a significant downturn in infrastructure activity with the global financial crisis hampering transaction volume. The number of transactions recorded in a calendar year dropped to 64 in 2009, representing a 27% decrease on the number of transactions recorded in 2007. Despite this, 2011 witnessed the relative recovery of the infrastructure market as the number of transactions grew to a peak of 90 within Asia and Rest of World regions. The number of infrastructure deals for 2012 are expected to signal further improvement and recovery within the infrastructure asset class as more transactions come to light in the coming months.

In 2012 to date, 54 infrastructure deals have been recorded for the Asia and Rest of World regions. This figure includes several notable transactions including the AUD 2.3bn acquisition of the Australian Kurnell Desalination Plant by a consortium of investors including Hastings and Ontario Teachers' Pension Plan. When looking at significant Asia and Rest of World-based deals from previous years, deal size as a whole has grown significantly since 2010 in comparison to the years 2007-2010. For example, in September 2011 a consortium of investors including MENA Infrastructure Fund, Saudi Electric Company, Samsung C&T Corporation and ACWA Power International acquired Saudi Arabian Qurayyah Power Station in a deal worth $2.7bn.

When looking at other regions in 2012, 53 deals were made in the region of North America, and as many as 100 have been completed in European infrastructure assets. However, these figures are likely to increase in the coming months as more transactions come to light, reflecting continued growth in the number of infrastructure deal transactions and further growth of the infrastructure asset class.

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