New JV targets Australasian infrastructure market
Investment business Plenary has teamed up with Ferrovial’s toll road arm, Cintra, to compete in the road infrastructure market in Australia and New Zealand.
The new business, Netflow, sees Sydney’s WestConnex scheme as a significant opportunity that will attract its initial focus.
Netflow brings together the two developers and managers of infrastructure into a business that will focus on toll road and concession projects. The JV also includes construction capability through Cintra’s sister business Ferrovial Agroman.
Cintra currently manages more than AU$30bn of assets, across 25 road concessions across Australia, the US, Canada, Europe and South America. Plenary Group is investor, developer and manager of public infrastructure, with 41 current projects worth more than AU$29 billion across Australia, Canada and the US.
Cintra CEO Enrique Diaz-Rato said that Netflow will play an important role in creating competition in the sector by looking to develop roads with a sharp focus on customer outcomes. “Cintra has extensive international road development and operational experience, under a variety of payment models, that can be leveraged and adapted to the Australian market,” he said. “In Plenary we have found a partner with a similar approach to infrastructure development and management, and we look forward to growing a portfolio of road projects together.”
The two have already worked together as part of the Nexus Infrastructure consortium, which won the AU$1.6bn Toowoomba Second Range Crossing project. “When we harness our respective in-house capabilities and apply these to local needs, the result will be strong value-for-money alternatives for road users and governments,” said Diaz-Rato.
Plenary CEO Paul Oppenheim added: “Growing populations in our major capital cities require new approaches to the development of future roads. Our recent experience demonstrates that a focus on competition, innovative design, and customer focused operations leads to success.The adoption of our active equity approach to infrastructure projects complements Cintra’s investment approach.”
Phil Dreaver, a founding director of Plenary’s North American business, has been appointed managing director of Netflow and will lead all aspects of its operations.
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This article was published on 16 Feb 2017 (last updated on 16 Feb 2017).