Patrizia and Mitsui to launch infrastructure strategy in APAC
Augsburg-based real assets company Patrizia is strengthening its partnership with Mitsui to launch a new flagship discretionary sustainable infrastructure strategy in APAC.
The venture aims to have overall assets under management of $1 billion and it represents Patrizia’s largest-ever infrastructure strategy dedicated to the region. It is one of the largest strategies dedicated to investing in sustainable mid-market infrastructure across the Asia-Pacific region, targeting the energy, digital, social and mobility sectors.
The strategy is managed by Patrizia MBK Fund Management (PMBK), a joint venture between Patrizia and Mitsui & Co, one of the largest trading and investment companies in the world with $122 billion of total assets.
The launch of the strategy continues the two companies’ successful collaborations in global infrastructure management, as the partnership between Patrizia and Mitsui has 15-year track-record in infrastructure investing.
The strategy will leverage the largest infrastructure network in APAC, with more than 15,000 local staff across 69 offices in the region and meaningful connections to both industry and government bodies.
“The launch of our new APAC strategy is a real game-changer for Patrizia,” said Graham Matthews, CEO, Patrizia Infrastructure. “It provides significant capital to really accelerate our next phase of growth in the Asia-Pacific region, which remains a core pillar of our mid-term growth strategy.”
The new initiative will invest in sustainable infrastructure assets in the key developed APAC markets of Australia, Japan, Singapore, South Korea, New Zealand and Taiwan, as well as in some developing Asian markets.
“With this new launch we are offering our largest-ever infrastructure strategy in APAC that delivers much broader investment opportunities across the entire real assets sector,” said Matthews. “Our proven long-term partnership with Mitsui over the last 15 years demonstrates that we remain a strong and trusted partner to our clients in these times of continued uncertainty”.
The investment strategy will primarily focus on mid-market brownfield opportunities in the four core sectors of energy, digital, social and mobility, targeting assets such as solar and wind farms, battery storage, data centres, social infrastructure and EV charging stations.
Each investment will aim to deliver strong financial returns alongside positive sustainable outcomes in line with the United Nations’ Sustainable Development Goals and they will help address the global megatrends of decarbonisation, digitalisation, urbanisation and demographic change.
“As the world’s top growth region, Asia-Pacific is an extremely compelling proposition for investors thanks to its favourable macroeconomic conditions, as well as the growing supply-demand imbalance for strategic infrastructure investments,” said Saji Anantakrishnan, Patrizia’s head of infrastructure for Australia and Asia.
Governments alone cannot finance this transition, opening up enormous opportunities for private capital to shape the future development and prosperity of the region, he said, and “deliver the highly attractive combination of both stable and sustainable returns for our investors”.
The Asia-Pacific region is forecast to contribute c.60% of global growth by 2030, while it has an estimated $900 billion annual shortfall in infrastructure funding, according to the Asian Development Bank.