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DP World creates $3.7b platform for port investments

|By Arabian Post Staff| DP World has announced the creation of an investment vehicle worth $3.7 billion in partnership with Caisse de dépôt et placement du Québec (CDPQ), one of North America’s largest pension fund managers, for investing in global port developments. DP World will hold 55% share of the partnership.

The platform will invest in ports and terminals globally (excluding the UAE) across the life cycle of the asset, with a focus on investment grade countries. It will also invest in existing assets, but with up to 25% invested in greenfield opportunities. Through this platform, DP World will share new investment opportunities and CDPQ will have the option of co-investing alongside DP World.

The investment vehicle will be seeded with two of DP World’s Canadian container terminals, located on the Pacific Coast in Vancouver and Prince Rupert, with CDPQ acquiring a 45% stake of the combined assets for $640 million.

 

The opportunity landscape in the port and terminal sector remains significant and this partnership offers us greater flexibility to capitalise on these opportunities while maintaining a strong balance sheet and retaining control.

Cannacord Genuity, Dubai, acted as financial advisor to DP World and BMO Capital Markets acted as financial advisor to CDPQ.

CDPQ’s investment in the two Canadian terminals are subject to a number of customary regulatory approvals.