Dubais DP World has created a $3.7bn investment vehicle in joint venture with Canadas Caisse de Depot et Placement du Quebec (CDPQ).
DP World owns a 55 per cent stake while DDPQ, a major pension fund, owns the remainder.
DP Worlds two Canadian assets will form the basis of the new investment vehicle. CDPQ will take a 45 per cent stake in the container terminals in Vancouver and Prince Rupert for $640m, subject to regulatory approvals.
Canadian Canaccord Genuitys Dubai branch was the financial adviser for DP World and Canadas BMO Capital Markets acted as financial adviser to CDPQ.
The platform will invest in ports and terminals in investment-grade countries excluding the UAE. It will invest across the lifecycle of the asset, focusing on existing assets. Up to 25 per cent of the funds will be invested in green field projects.
Through the platform, DP World will share new investment opportunities and CDPQ will have the option to co-invest.
In CDPQ we have found a partner with shared vision who is willing to participate in the risk and reward of investing throughout the life-cycle of trade-enabling assets across the globe, said Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, in a press release.
The partial monetisation of our Canadian assets further strengthens our balance sheet. The opportunity landscape in the port and terminal sector remains significant and this partnership offers us greater flexibility to capitalise on these opportunities while maintaining a strong balance sheet and retaining control. By combining our in-depth knowledge of container handling and CDPQs expertise in infrastructure investing and long-term horizon, we can continue to develop the port and terminal sector globally.