| TORONTO (September 19, 2007): Airport Group Investments Ltd. (AGIL), a limited company owned by the Ontario Teachers' Pension Plan (Teachers') and Australia’s Victorian Funds Management Corp. (VFMC), now owns a 48.25% interest in Birmingham International Airport.
AGIL acquired the shares from Macquarie Airports Group Ltd. and Aer Rianta International c.p.t. for approximately £420 million (C$875 million) after the close of a competitive tender process launched nine months ago. West Midlands District Councils, representing seven metropolitan areas near the airport, own a 49% interest in the company, while staff, through an employee share trust, holds 2.75%.
Birmingham International Airport, the sixth largest airport in the U.K., handles more than nine million passengers a year.
“We look forward to working with VFMC, the District Councils and other stakeholders to forge a long-term profitable partnership that will see Birmingham Airport reach its potential as Europe’s leading regional airport,” said Jim Leech, Senior Vice-President of Teachers’ Private Capital, the pension plan’s private investment arm.
Mr. Leech noted that core infrastructure investments, like Birmingham Airport, provide stable returns that correlate well with inflation – an excellent match for teachers’ pensions that include inflation protection for retirees.
Leo de Bever, Chief Investment Officer of VFMC, said: “This is an exciting milestone for VFMC in its journey towards becoming a centre of investment excellence. This investment will be the cornerstone in a portfolio of direct infrastructure investments which we intend to build over the coming years. The airport plays a key role in enhancing economic growth in the West Midlands region and AGIL is an ideal long-term partner for the District Councils.”
About Ontario Teachers' Pension Plan
With $106 billion in net assets as of Dec. 31, 2006, the Ontario Teachers' Pension Plan is the largest single-profession pension plan in Canada. An independent organization, it invests the pension fund's assets and administers the pensions of 271,000 active and retired teachers in Ontario.
Teachers' Private Capital is the plan's private investment arm and one of North America's largest private investors. Its infrastructure group focuses on the acquisition and long-term retention of low-risk assets that generate stable returns linked to inflation. The combined value of the fund's investments in infrastructure, timber and private equity is approximately C$16 billion.
About Victorian Funds Management Corporation
VFMC is based in Melbourne, Australia, and manages investments on behalf of Victorian Government entities, including pension funds, insurance funds and endowments for hospitals and universities within Victoria. VFMC was founded by an act of State Parliament and reports to the Treasurer of Victoria through the Department of Treasury and Finance. It currently manages assets totalling more than A$40 billion. The benefits of VFMC’s investment decisions effectively accrue to the citizens and employees of the State of Victoria.
Contact:
Deborah Allan
Director, Communications and Media Relations
Ontario Teachers' Pension Plan
(416) 730-5347
deborah_allan@otpp.com |
