DP World has formed an investment vehicle with Caisse de depot et placement du Quebec (CDPQ), one of North America’s largest pension fund managers. The investment platform totals $3.7bn, with DP World holding a 55% share and CDPQ the remaining 45%.
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 mostly in existing assets, but with up to 25% invested in greenfield opportunities.
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 $640m.
Canadian pension firms have a history of investing in container port assets, notably a decade back when Hong Kong’s OOCL containerline sold off a swathe of port assets to pension funds based in Ontario.