Skip to main content

The Asian-bound MSC Fabienne is loaded at Port Botany in Sydney, Australia, on 22 April 2004.

TORSTEN BLACKWOOD/AFP

Canadian pension plans' love affair with Australian assets is reaching new heights after four different funds bid to lease two of the country's biggest ports.

The four funds, split into two different bidding groups, are looking to lease Port Botany and Port Kembla in New South Wales state, according to the Wall Street Journal, and the total offer price could reach $3-billion (Australian).

The new bids come on the heels of some hefty investments in Australia by Canadian pension funds earlier this year. Canada Pension Plan Investment Board sunk $1.04-billion (Canadian) into two office towers in Australia, the most its ever invested in a single real estate project, and the Caisse de dépôt et placement du Québec teamed up with others to buy an Australian gas pipeline owner for $2.05-billion (Australian) this summer.

Story continues below advertisement

Like Canada, Australia's economy is strong relative to the U.S. and the euro zone, in large part because the country is resource rich.

For the port lease sale, Alberta Investment Management Corp., Canada Pension Plan Investment Board and Australia's QIC teamed up to bid together, according to the WSJ, while Ontario Teachers' Pension Plan, Borealis Infrastructure and Australia's Hastings Funds Management formed a different consortium.

By selling the port leases, Australia hopes to raise money to help fund the expansion of highways and rail lines.

Report an error Editorial code of conduct
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

If your comment doesn't appear immediately it has been sent to a member of our moderation team for review

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.