IFM to spend $25bn on Aussie infrastructure

IFM Investors will spend $25 billion on Australian infrastructure over the next decade, in what it says is expected to create 50,000 new jobs.

The industry-fund-owned fund manager will invest in existing assets including electricity distributor Ausgrid, international airports (Melbourne, Brisbane, Adelaide and Darwin) and seaports (Brisbane, Botany, Kembla).

"The new investment aligns with a recent exhortation from Australian Treasurer Josh Frydenberg, who in August called for such measures in preference to share buybacks and special dividends," IFM said.

The $2.5 billion average spend is higher than the roughly $1 billion that IFM Investors has spent on its Australian infrastructure assets in the last eight years.

"This ongoing capital expenditure is a result of the alignment between the long term time horizon of superannuation money and major critical Australian infrastructure," IFM Investors chief executive Brett Himbury said.

"The responsible stewardship of these assets by industry super funds and their partners protects and grows the retirement savings of members. These investments are an investment in the future value of these assets and will increase the productive capacity of the entire country."

The $20 billion over will be spread as an average of $2 billion each year but higher than $2.6 billion in 2020, 2021 and 2028.

The announcement follows the Treasury's push for the increased infrastructure spending to hoist wage growth.

Read more: IFM InvestorsJosh Frydenberg
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