On Monday, Global Infrastructure Partners (GIP) announced that it is part of a consortium of world-leading institutional investors who have bought a 37.4 percent minority stake in the U.K.’s Peel Ports Group from leading alts investor DWS. Its co-investors in the deal are the Netherlands’ largest pension fund manager, APG, and Australian retirement “superfund” AustralianSuper.
Peel Ports is a critical U.K. infrastructure asset with close proximity to major demand centers and is strategically positioned for Atlantic traffic. It is responsible for the operations and management of a network of seven strategically located ports around the U.K. and Ireland: namely, Clydeport, Dublin, Great Yarmouth, Heysham, Liverpool, London Medway and the Manchester Ship Canal. The company is one of the largest port operators in the U.K., handling some 66 million tons of cargo in 2020, and posting annual revenues of around GBP 792 million (about $1.08 billion).
“Peel Ports Group has been at the forefront of the industry for over a decade in its delivery of growth and transformational infrastructure projects, which includes Liverpool’s L2 container terminal, the UK’s only “Northern” deep sea gateway,” Peel Ports Group CEO Mark Whitworth said in a statement announcing the transaction. “The ambitious partnership between shareholders and management has been a cornerstone of the Company’s success and we look forward to building on those achievements with our new like-minded Shareholders APG & GIP, alongside The Peel Group and AustralianSuper. I would like to thank DWS for their support, expertise and long-term vision that’s helped shape this highly successful business.”
“The investment in Peel Ports, on behalf of our pension fund clients, represents an attractive opportunity to gain access to a high-quality, robust infrastructure asset with promising long-term growth potential,” APG’s Managing Director of Real Assets Patrick Kanters said. “APG has been involved in Peel Ports since 2006 and we are pleased to convert our existing exposure into a larger direct investment. As a pension investor, we are constantly looking for attractive investments in infrastructure worldwide, to achieve stable and long-term returns for our pension fund clients and their participants. Peel Ports has a strong track record of growth, leadership and developing strong relationships with its customers and partners across the world. We are fully supportive of Peel Ports’ ambitions to continue to grow its UK footprint, whilst ensuring delivery of unparalleled service to its customers. We look forward to working with management and the other shareholders on this long-term partnership.”
“GIP has deep experience and a strong track record of investing in and driving value from landlord ports,” GIP Partner Michael McGhee said. “We regard Peel Ports as the premier landlord port company in the UK and a leader in the private ownership model for landlord ports globally. Peel Ports has a demonstrated track record of investing to support its customers’ businesses and of clear commercial decision making to deliver certainty to supply chain participants in the UK over many years. We look forward to working with management to help deliver further growth as well as efficiencies to its customers and the wider U.K. logistics market.”
“Generating the opportunity to increase our ownership interest in Peel Ports to be the largest shareholder behind The Peel Group highlights the Fund’s desire to acquire high quality infrastructure assets as we aim to continue to grow the portfolio materially in the years ahead,” AustralianSuper’sHead of Infrastructure Nik Kemp said. “Peel Ports is a high-quality infrastructure asset that has proven to be a resilient investment and continues to contribute positively to the retirement savings of our members. We look forward to Peel Ports leveraging its strong customer relationships, strategic locations and deep logistics management expertise to capitalize on new opportunities emerging from the favorable economic outlook and expansion of global trade. Introducing to the shareholder register two high quality global infrastructure investors in APG and GIP enhances the foundation of the company to deliver on its next exciting stage of growth.”
“Peel Ports was our flagship investment for our Pan European Infrastructure strategy outperforming our original investment case,” added Hamish Mackenzie, Head of Infrastructure at DWS “Having built a successful relationship with the management team of Peel Ports, DWS was able to oversee significant capital expansion projects, including the development of the L2 container terminal, and several cost efficiency and operational improvement programs over the course of our ownership. This is a very positive outcome for our investors. We are convinced that given the investment profile and sector expertise of the new shareholders, both APG and GIP will undoubtedly provide sound and robust long-term support for the ongoing growth of Peel Ports.”
