This article is from the Australian Property Journal archive
ABU Dhabi-based investment and holding company ADQ is buying a 49% interest in Plenary, with the $1 billion deal seeing ADQ buyout Canadian pension CDPQ’s 20% stake.
The partnership will see ADQ and Australian infrastructure development financier and manager Plenary establish co-development and investment platform that will focus on public and social infrastructure opportunities in areas including GCC region, the Middle East and Central Asia.
The purchase is set to provide Plenary with a significant boost in balance sheet strength, with ADQ to invest primary capital that will be used to accelerate Plenary’s growth in its key markets across Australia, the Middle East, Asia, the UK and Europe and support investment in all future project opportunities.
“This collaboration, marking our inaugural venture in Australia, underscores ADQ’s commitment to developing partnerships that complement our investment strategy, which aims to create long-term value and generate sustainable financial returns,” said Hamad Al Hammadi, deputy group CEO at ADQ.
“We are confident that our partnership in Plenary will unlock significant opportunities to contribute to the development of state-of-the-art infrastructure assets, boosting economic growth and social welfare in the target geographies.”
While Plenary will remain majority owned and controlled by its Australian founders and senior management team.
Plenary was founded by John O’Rourke, Ray Wilson, Paul Oppenheim and Jim Cox in 2003.
“This is a strong result for Plenary, ADQ and our clients. We have strong strategic alignment with ADQ, and Plenary is enthusiastic about the growth opportunities that will be made possible in addition to continuing to fund the capital needs of our core business,” said O’Rourke, chair and founder at Plenary.
“The partnership will accelerate our growth in Australia and internationally, and the Middle East co-development and Investment platform will unlock significant opportunity and value for both companies in the region.”
“ADQ enjoys a leading position in the Middle East region and increasingly on a global scale, with an impressive portfolio of infrastructure assets. Critical to our partnership, ADQ has a clear mandate to support the further development and operation of public infrastructure in partnership with us. We are confident that this partnership will allow us to seize new opportunities and establish ourselves as a leader in our growth markets.”
CDPQ, which has investor more than $500 million in Plenary projects since 2012, acquired a stake in the group in 2016.
“Since we began our partnership with Plenary Group in 2012, the company has experienced significant growth, something we are delighted to have contributed to,” said Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ.
“We are pleased to retain our investment in many of Plenary’s Australian assets and we look forward to exploring new opportunities alongside the company, in addition to retaining our 90% stake in Plenary Americas.”
