Future Fund has purchased 35 million shares in toll road operator Transurban for $192.7 million, to hold 6.78% as the fund continues its build its exposure in Australian infrastructure.
Purchased through infrastructure fund manager RARE Infrastructure, the Future Fund confirmed to Financial Standard that it had been building its holding in Transurban since December through the activities of its external managers.
A spokesperson for the Future Fund said exposure to Australian infrastructure remains attractive.
"Australian infrastructure is attractive to the Future Fund. Our 2010/11 annual report showed that 40% of our infrastructure investments are in Australia and we expect to continue to carefully build our exposure to infrastructure," said the spokesperson.
On March 20, fund manager CP2 sold a 7.86% stake in Transurban through a fully underwritten transaction with UBS AG. Prior to this, CP2 managed a combined 12.57% stake on behalf of four global institutional investors.
Syd Bone, managing director of CP2, said the assets had attractive long-term investment characteristics with a high-quality portfolio of toll road assets but their clients were rebalancing their portfolio.
"This block trade achieves a portfolio rebalancing for two of our clients who had significantly increased their long-term exposure to Australian toll roads late last year when we acquired ConnectEast," he said.
Following the transaction, two CP2 clients have a continuing investment in Transurban. CP2 manages money for overseas pension and sovereign wealth funds.