Australia-based global institutional investment manager IFM Investors plans to invest £10 billion in the UK infrastructure and energy transition projects by 2027.
Supported by its major shareholders, IFM has signed a Memorandum of Understanding (MoU) with the Government of the United Kingdom.
The objectives of the MoU are to drive IFM’s investment in the UK across large-scale infrastructure and energy transition projects by working with the government to identify commercially viable opportunities for investment.
The MoU intends to facilitate collaboration between IFM and UK Government departments to provide greater understanding of policy priorities and the ongoing development of the infrastructure and energy transition sectors.
IFM Investors opened an office in London in 2006 and is continuing to grow its presence in the UK, including through infrastructure equity and debt, such as IFM’s infrastructure portfolio’s investments in major UK toll roads, utilities and airports, and IFM’s extensive portfolio of loans to UK-based infrastructure and energy transition businesses and projects.
A key example of how the MoU may support further UK investment is Nala Renewables, a portfolio company of one of IFM’s funds and a renewable energy business headquartered in the UK, which is actively seeking investment opportunities in the UK as it looks to achieve a renewable capacity target of 4GW by 2025.
The MoU is an increase on IFM’s commitment in 2022 to invest £3 billion in its UK-based infrastructure portfolio assets, which IFM is on track to meet.
The MoU will be signed at the Global Investment Summit 2023 in London between IFM Investors and the Minister for Investment Lord Johnson at Hampton Court Palace.
Quotes attributable to UK Business & Trade Secretary Kemi Badenoch: “This £10bn commitment from IFM Investors is a very important investment for the UK’s innovative energy and infrastructure sectors.”
“The increasing flows of new capital into our country, combined with the forthcoming Global Investment Summit, show how the UK is fast becoming the most exciting and innovative place in the world to invest.”
Quotes attributable to IFM Investors Chief Executive David Neal: “Australia’s ‘super funds’ system can be a trusted long-term partner with the United Kingdom. We’re proud to sign this Memorandum of Understanding with the UK Government, which is a signal of the confidence IFM and Australian super funds have in the UK as a place to invest.”
“Our presence in the UK continues to grow and we look forward to working closely with the Government to drive investment into large-scale infrastructure and energy transition projects across equity and debt funding.”
“Partnerships between governments and long-term investors are necessary to unlock the potential of pension funds to invest to help mitigate system-level risks such as climate change.”
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