Infratil eyes sale of $1b in assets as it targets stronger growth
Photo:
Supplied
Infratil is looking to sell about a billion dollars of assets over the next two to three years as part of a strategy to create more shareholder value.
"We're much bigger now than we used to be and so we've taken a look at our strategy," Infratil chief executive Jason Boyes said,
following the release of its full year result
.
He said all business units needed to fit with the growth strategy, which included CDC Data Centres, One NZ, Wellington Airport, RetireAustralia and healthcare assets.
"Every business really has to contribute, and if they can't scale in our ownership . . . then we're better to find a better owner for them and move on, and move that capital into things that can meaningfully contribute in the long term."
He said no decisions had been made about what was up for sale, though the retirement business was one asset it had considered selling in the past.
"So that would definitely be one that we would not see being in the portfolio over the long term."
He said Wellington Airport still had growth potential.
"I think there are actually ways to scale our exposure to airports, which are interesting, but it has to, over time meet the same requirements as every other business which is it needs to be big enough to contribute meaningfully, as we hopefully continue to grow."
Healthcare services were also showing growth potential, with advances in technology.
"A niche sub-sector of radiology is growing really fast globally and could be a way for those businesses to scale in the portfolio and remain interesting and relevant for shareholders."
Boyes said the proceeds of any sale would likely support growth in renewable energy.
"Our investment in renewable energy in Southeast Asia and Singapore - that is a business that could take a good chunk of that billion dollars . . . particularly with a big project they're working on there with the help of the Singapore government.
"So that's one place (further investment) could go, but we always look around for the next theme that we want to be exposed to as early as we can."
One of the theme areas Infratil was looking at was advanced logistics, such as robots and warehouses dispensing pharmaceuticals or other items.
"A very interesting infrastructure-like asset that doesn't currently exist today. I wouldn't be surprised to see that turn up at some point, or an idea like that," Boyes said.
"I think that's the best way to think about the portfolio is how it's going to develop over time.
"The individual assets change, themes come and go, but actually for something that's been going for 31 years, the recurring theme is how you manage that over a long period of time."
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