Simplicity, New Zealand’s default KiwiSaver and investment fund manager, has announced the establishment of a new local infrastructure company called InfraKiwi Limited (InfraKiwi).
InfraKiwi is designed to acquire and manage key infrastructure assets in New Zealand with a long-term focus. It is expected to be initially capitalised through private equity investments from Simplicity’s KiwiSaver and Investment Fund schemes. Once it reaches a sufficient scale, InfraKiwi plans to list on the NZX to attract additional investors.
InfraKiwi’s primary focus areas include energy, water, transport, data, and social assets. The company is committed to long-term ownership and emphasises achieving operational excellence across all these sectors.
“Our long-term goal is for InfraKiwi to be a listed company that all Kiwis can invest in, directly or via their KiwiSaver and investment funds, that owns and operates the infrastructure we all use,” said Sam Stubbs, Simplicity Managing Director.
“We want its ownership to be restricted to NZ shareholders. With all the capital KiwiSaver schemes, Iwi and individuals have to invest, and we don’t think funding from offshore investors is required.”
“And by focusing on long-term operational excellence and acquiring and operating large-scale infrastructure, we hope InfraKiwi will eventually become New Zealand’s biggest and most boring company.”
Following its planned listing on the NZX, InfraKiwi also intends to qualify for inclusion in an S&P/NZX index, which would help broaden investor participation by attracting funds that track the index.
InfraKiwi’s constitution will include a ‘Golden Share’ held by a special-purpose trust to safeguard its long-term structure and mission. Its focus will be on acquiring and managing existing or recently completed infrastructure assets while providing stable dividend returns to its shareholders.
For Simplicity chair, Rob Everett, “InfraKiwi is seeking to bridge the gap between our biggest need for investment – infrastructure – and the growing pools of capital available from KiwiSaver schemes, Iwi, and other institutional and individual investors.”
“We think matching the long-term infrastructure needs of New Zealand with the capital New Zealanders will save will generate stable returns for investors and promote a thriving infrastructure sector supported by much-needed jobs,” he said.
“Without mechanisms like this, more of our savings will continue to be invested offshore, making investors money but missing the opportunity to help fund productive assets at home.”
“New Zealand is now building up enough collective savings to fund most of our own infrastructure, and InfraKiwi’s locally owned and controlled model provides an attractive infrastructure funding option for central and local government.”