Infrastructure Transportation Deals Reached Record Average Size in 2014 – February 2015

by Stephen Yates

  • 12 Feb 2015
  • INF

Preqin’s Infrastructure Deals feature on Infrastructure Online includes extensive information on over 10,800 completed transactions within the infrastructure market place globally. In excess of 6,000 transactions have been completed since 2008, with an estimated deal value of over $1.3tn. Within infrastructure, transportation as an industry has always been prominent, but has grown in recent years to account for almost 16% of all transactions completed since 2008.

The annual number and estimated aggregate value of completed transportation deals has increased significantly since 2008, and reached its peak in 2013, when 172 deals were completed with an estimated aggregate deal value of $96bn. 2014 was also a very good year for the industry, with 141 transactions representing an estimated aggregate value of $82bn, which is expected to increase as more deals come to light in the coming months. Consequently, average deal size for transportation transactions has increased substantially since 2011, as shown in the chart above. Since dropping to an all-time low of $454mn in 2011, 2013 and 2014 saw average deal size increase to $596mn and $716mn respectively.

Europe is the most prominent region for transportation transactions, hosting 40% of deals completed since 2008. Asia represents 17% of completed transportation deals in this time period, while North America accounts for just 12%. Sixty-four percent of transportation deals were in assets that were already fully operational, 22% were in assets at the greenfield stage of development and the remaining 14% in brownfield assets.

Several notable transportation deals have taken place in the last 12 months. In Australia, a large consortium consisting of John Holland, Leighton Contractors Infrastructure, Marubeni Corporation, MTR Corporation, Palisade Investment Partners, Partners Group, Plenary Group and UGL Limited acquired North West Rail Link, a fully-automated rapid transit rail system based in Sydney, in a deal worth AUD 8.3bn. Other notable deals include Ardian and Crédit Agricole Assurances-Prédica’s acquisition of a 75% stake in VINCI Park, a car park operator based in France.

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