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Asian Infrastructure Deal Flow - October 2014

by Stephen Yates

  • 08 Oct 2014
  • INF

Preqin’s infrastructure deals platform on Infrastructure Online now includes extensive information on over 10,000 completed transactions in infrastructure assets globally. These deals involve a variety of investors, ranging from infrastructure fund managers and direct institutional investors to industry players such as developers, contractors and other industry-specific trade investors. Around 7,000 transactions have been completed since 2007, with an estimated deal value of well over $1tn. Within this space, the Asian infrastructure market accounts for 11% of the total number of deals completed since 2007.

As shown in the chart above, the annual number and estimated aggregate value of deals completed in the Asian infrastructure market have remained reasonably consistent in recent years. Annual estimated aggregate deal value has steadily increased in Asia since 2008, reaching a high of $26.8bn in 2013. So far in 2014, 48 Asia-based infrastructure deals have been completed, representing an estimated aggregate deal value of $17.2bn – these figures will increase as more information is made available from fund managers and institutional investors.

In terms of infrastructure deals completed in Asia-based assets by transaction value,  between 2011 and October 2014, deals valued at less than $100mn have typically accounted for the majority of transactions completed (an average of 53% across the period). However, the proportion of deals completed at or above $1bn has grown significantly since 2011, with these sizeable transactions representing just 8% in 2011, but 21% so far in 2014.

India is the most prominent single country within Asia in terms of the proportion of deals completed, with Indian assets accounting for 28% of all Asia-based deals on record. This is followed by China, which accounts for 16% of all Asia-based deals completed, South Korea (9%), Japan (7%) and Indonesia (6%); Singapore and the Philippines each account for a further 6% of all completed Asian deals.

In terms of specific industry, energy assets are the most prominent within Asia, representing 44% of all Asia-based deals completed. Utilities assets are also significant with such assets accounting for 22% of the total, closely followed by transportation (16%). Fifty-one percent of all Asian deals on record were at the secondary stage of the development at the time of investment, while 10% were at the brownfield stage, and the remaining 39% were greenfield developments.

There have been several notable transactions that have taken place in the Asian infrastructure market over the last 12 months. In Malaysia, 1Malaysia Development Berhad and Mitsui & Co - Innovation & Corporate Development Business Unit acquired the 3B Power Plant for $3.2bn. Another notable deal included the purchase of Japan Cablenet in November 2013 by Sumitomo Corporation, in a deal worth $1.2bn. 

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