Concession Infrastructure

A 20-year track record of investing and asset management, predominately in long-term government contracts and social and economic infrastructure projects.

shipping containers

Key documents

Infrastructure ESG Policy
Infrastructure Whistleblower and Grievance Policy

Scale

We are part of the abrdn brand which manages more than $25.7 billion of assets across private markets. This makes us part of one of the largest private markets investors in the world. In total, over $7.0 billion of infrastructure investments is managed on behalf of investors.*

*Source abrdn. As of December 31, 2020.

Team

Established in 1998, our highly experienced team of 34 investment professionals have invested in over 120 infrastructure investments to date (May, 2019). The team is based in London, Edinburgh, Paris, Madrid, Amsterdam, Bahrain, Sydney and Bogota.

Investors

Our investor base spans both public and corporate pension funds, insurance companies and family offices across the world.

Strategy

We focus on availability-based, partially inflation-linked cash flows with little or no correlation to economic cycles. Value resides in the contract, with limited risk associated with residual asset value.

We invest in hospitals, schools, roads, rolling stock, government accommodation, social housing, and waste and water in the UK, Europe, Australia, US, the Middle East and Latin America.

Concession portfolio

roads

Roads

A state department of transportation, in cooperation with the Federal Highway Administration, proposed to improve 26 miles of interstate highway by introducing High Occupancy Toll lanes.

The proposed interstate HOT project is a conversion and expansion of the current High Occupancy Vehicle facility that will provide growing communities and congested interstate traffic with additional capacity.interstate traffic with additional capacity

Sector: Transport

Geography: United States

Project Size: US $663m

industrial buildings

Social

This is a PPP contract to design, build finance, maintain and operate a new Justice Court in Paris . The new court will house 90 courtrooms and is expected to be visited by 8,500 people daily.

The Project Agreement is 32 years, including a 5 year construction period. The term of the operation period is fixed to 27 years.

Sector: Government

Geography: France

Project Size: €605m

brown belt

Water Treatment

This water treatment plant is the design, build, finance and operations of a new treatment plant in western Australia. The plant will serve the Goldfields Agriculture region and will supply over 100,000 inhabitants with fresh water supply.

The project has been successfully operating since 2013 and we have recently completed the first senior debt refinancing as planned for a further 5 year tenor.

Sector: Water Treatment

Geography: Australia

Project Size: A$ 400m

  • roads

    Roads

    A state department of transportation, in cooperation with the Federal Highway Administration, proposed to improve 26 miles of interstate highway by introducing High Occupancy Toll lanes.

    The proposed interstate HOT project is a conversion and expansion of the current High Occupancy Vehicle facility that will provide growing communities and congested interstate traffic with additional capacity.interstate traffic with additional capacity

    Sector: Transport

    Geography: United States

    Project Size: US $663m

  • industrial buildings

    Social

    This is a PPP contract to design, build finance, maintain and operate a new Justice Court in Paris . The new court will house 90 courtrooms and is expected to be visited by 8,500 people daily.

    The Project Agreement is 32 years, including a 5 year construction period. The term of the operation period is fixed to 27 years.

    Sector: Government

    Geography: France

    Project Size: €605m

  • brown belt

    Water Treatment

    This water treatment plant is the design, build, finance and operations of a new treatment plant in western Australia. The plant will serve the Goldfields Agriculture region and will supply over 100,000 inhabitants with fresh water supply.

    The project has been successfully operating since 2013 and we have recently completed the first senior debt refinancing as planned for a further 5 year tenor.

    Sector: Water Treatment

    Geography: Australia

    Project Size: A$ 400m

Economic Infrastructure

Our economic infrastructure investment philosophy centers on our belief that infrastructure is a long-term asset class capable of delivering attractive, consistent returns to investors.

bridge

Philosophy

Our economic infrastructure investment philosophy centers on our belief that infrastructure is a long-term asset class capable of delivering attractive, consistent returns to investors. Our approach is focused on:

  • developing a long-term fund structure which is aligned with investors' objectives.
  • creating a portfolio of mid-market core/core+ infrastructure investments.
  • recognizing the importance of effective asset management and stakeholder engagement.
  • clearly defining what constitutes core infrastructure within our target return range.

Investors

Our investor base spans both public and corporate pension funds, insurance companies and family offices across the world.

Strategy

We invest in operational assets with limited or no construction risk. We target infrastructure investments in Europe which are typically yielding from day one. We are attracted to the following investment characteristics:

  • lower to mid-market assets in less competitive areas of the market.
  • assets which provide essential services and have predictable cash flows.
  • regulated assets or assets with a strong, contractual framework.
  • lower risk assets that require limited operational development.
  • majority stakes or minority interests where we have appropriate governance rights.

Economic portfolio

Nordic Power

Utilities Company

In June 2015, we acquired 100% of Nordic Power AS, a portfolio of 13 newly commissioned hydropower plants from Nordkraft, a Norwegian utility controlled by the Narvik Municipality. Since acquisition, we have added an additional two plants to the portfolio, taking the total projected annual output to 160 GWh.

Key attractions:

  • Attractive return and yield profile
  • Core, power generation asset
  • Proven technology, low operating risk and long asset lives
  • Exclusive option over pipeline of new plants
Sector Subsector Geography Ownership
Energy Hydro Norway 100%
Equities

Transportation Equipment Company

Rock Rail East Anglia PLC

Aquired October 2015. 20x12 carriage electric Stadler trains, 24x4 and 14x3 carriage bi-mode Stadler trains serving the InterCity, Stansted Express and Regional lines of the East Anglia Franchise, operated by Abellio. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.

Sector Location Ownership
Transport UK 48%

Rock Rail Moorgate

Aquired February 2016. 25x6 carriage electric Siemens trains, serving Great Northern franchise Moorgate commuter lines, operated by Govia Thameslink Railway. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.

Sector Location Ownership
Transport UK 94%

Rock Rail South Western

Aquired June 2017. and 30x5 carriage electric Bombardier trains, serving key London commuter services on the South Western franchise, operated by First MTR. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.

Sector Location Ownership
Transport UK 45%

Rock Rail West Coast

Aquired December 2019. 10x7 carriage electric Hitachi trains and13x5 carriage bi-mode Hitachi trains serving the West Coast Partnership Franchise, operated by First Trenitalia. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.

Sector Location Ownership
Transport UK 94%
Auris Kaasunjakelu Oy

Oil & Gas Company

In June 2015, we acquired 100% of Auris Kaasunjakelu, the largest natural gas distribution pipeline in Finland, from Gasum Oy, a Finnish state controlled company. The pipeline provides local gas distribution to Helsinki and 11 surrounding areas.

Key attractions:

  • Strong cash generation and yield
  • Core infrastructure asset with regulated return
  • Safe and stable operating and regulatory environment
  • Safe, stable operating environment
  • Recently upgraded asset base and low capex requirement
  • Growth opportunities through acquisition
Sector Subsector Geography Ownership
Utilities Gas distribution Finland 100%
  • Nordic Power

    Utilities Company

    In June 2015, we acquired 100% of Nordic Power AS, a portfolio of 13 newly commissioned hydropower plants from Nordkraft, a Norwegian utility controlled by the Narvik Municipality. Since acquisition, we have added an additional two plants to the portfolio, taking the total projected annual output to 160 GWh.

    Key attractions:

    • Attractive return and yield profile
    • Core, power generation asset
    • Proven technology, low operating risk and long asset lives
    • Exclusive option over pipeline of new plants
    Sector Subsector Geography Ownership
    Energy Hydro Norway 100%
  • Rock Rail

    Transportation Equipment Company

    Rock Rail East Anglia PLC

    Aquired October 2015. 20x12 carriage electric Stadler trains, 24x4 and 14x3 carriage bi-mode Stadler trains serving the InterCity, Stansted Express and Regional lines of the East Anglia Franchise, operated by Abellio. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.

    Sector Location Ownership
    Transport UK 48%

    Rock Rail Moorgate

    Aquired February 2016. 25x6 carriage electric Siemens trains, serving Great Northern franchise Moorgate commuter lines, operated by Govia Thameslink Railway. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.

    Sector Location Ownership
    Transport UK 94%

    Rock Rail South Western

    Aquired June 2017. and 30x5 carriage electric Bombardier trains, serving key London commuter services on the South Western franchise, operated by First MTR. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.

    Sector Location Ownership
    Transport UK 45%

    Rock Rail West Coast

    Aquired December 2019. 10x7 carriage electric Hitachi trains and13x5 carriage bi-mode Hitachi trains serving the West Coast Partnership Franchise, operated by First Trenitalia. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.

    Sector Location Ownership
    Transport UK 94%
  • Auris Kaasunjakelu Oy

    Oil & Gas Company

    In June 2015, we acquired 100% of Auris Kaasunjakelu, the largest natural gas distribution pipeline in Finland, from Gasum Oy, a Finnish state controlled company. The pipeline provides local gas distribution to Helsinki and 11 surrounding areas.

    Key attractions:

    • Strong cash generation and yield
    • Core infrastructure asset with regulated return
    • Safe and stable operating and regulatory environment
    • Safe, stable operating environment
    • Recently upgraded asset base and low capex requirement
    • Growth opportunities through acquisition
    Sector Subsector Geography Ownership
    Utilities Gas distribution Finland 100%

Dominic Helmsley

Dominic Helmsley

Head of Core Infrastructure

Dominic heads up the Core Infrastructure team at abrdn. He has over 20 years’ experience in the infrastructure sector combining extensive mergers and acquisitions experience with asset management expertise. Dominic spent 12 years with BAA plc where he headed their international acquisitions group and oversaw the acquisition and management of a number of overseas investments. Dominic then spent eight years in the fund management industry, initially with Babcock and Brown, as part of the European Infrastructure team that raised a €2.2bn infrastructure fund, and then as a Partner with Arcus Infrastructure Partners, which completed an MBO from Babcock and Brown in 2009.
Gershon Cohen

Gershon Cohen

Global Head of Infrastructure Funds

Gershon Cohen is Global Head of Infrastructure Funds, abrdn. Gershon’s platform has USD$3bn of institutional capital under management and consists of 7 unlisted funds and associated investment vehicles invested in over 120 greenfield and brownfield infrastructure projects. He is responsible for the management, leadership and development of the concessions infrastructure strategy for abrdn and is a fund principal and chair of investment and associated committees of the platform. The platform operates from offices in London, Edinburgh, Paris, Madrid, Amsterdam, Sydney, Bogota and Bahrain with a team of 32 professional investors and other joint venture partners.

Previously Gershon held the position of CEO SWIP Infrastructure Funds & CEO Lloyds Bank Project Finance Equity and Funds, which involved the origination, investment and management of all infrastructure equity products across the UK, Europe, Australia and Americas. Prior to this, Gershon was Global Head of Lloyds Bank Project Finance. Gershon has played a pivotal role in structuring, arranging and providing innovative funding solutions to a range of ground-breaking PFI/PPP/P3 projects in healthcare, transport, wastewater and education over the last 20 years. Gershon led the fundraising efforts for the current platform. He sits and advises on many trade and governmental committees on infrastructure investment matters; has presented at numerous conferences and seminars; and has written a number of articles on PPP/P3.

  • Dominic Helmsley

    Dominic Helmsley

    Head of Core Infrastructure
    Dominic heads up the Core Infrastructure team at abrdn. He has over 20 years’ experience in the infrastructure sector combining extensive mergers and acquisitions experience with asset management expertise. Dominic spent 12 years with BAA plc where he headed their international acquisitions group and oversaw the acquisition and management of a number of overseas investments. Dominic then spent eight years in the fund management industry, initially with Babcock and Brown, as part of the European Infrastructure team that raised a €2.2bn infrastructure fund, and then as a Partner with Arcus Infrastructure Partners, which completed an MBO from Babcock and Brown in 2009.
  • Gershon Cohen

    Gershon Cohen

    Global Head of Infrastructure Funds

    Gershon Cohen is Global Head of Infrastructure Funds, abrdn. Gershon’s platform has USD$3bn of institutional capital under management and consists of 7 unlisted funds and associated investment vehicles invested in over 120 greenfield and brownfield infrastructure projects. He is responsible for the management, leadership and development of the concessions infrastructure strategy for abrdn and is a fund principal and chair of investment and associated committees of the platform. The platform operates from offices in London, Edinburgh, Paris, Madrid, Amsterdam, Sydney, Bogota and Bahrain with a team of 32 professional investors and other joint venture partners.

    Previously Gershon held the position of CEO SWIP Infrastructure Funds & CEO Lloyds Bank Project Finance Equity and Funds, which involved the origination, investment and management of all infrastructure equity products across the UK, Europe, Australia and Americas. Prior to this, Gershon was Global Head of Lloyds Bank Project Finance. Gershon has played a pivotal role in structuring, arranging and providing innovative funding solutions to a range of ground-breaking PFI/PPP/P3 projects in healthcare, transport, wastewater and education over the last 20 years. Gershon led the fundraising efforts for the current platform. He sits and advises on many trade and governmental committees on infrastructure investment matters; has presented at numerous conferences and seminars; and has written a number of articles on PPP/P3.

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Risk warning
Risk warning - Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.