Investing in NZ infrastructure

Waikato people with $20,000 to spare will be given the opportunity to invest in local infrastructure such as schools, hospitals and more with the launch of a new fund to finance public-private partnerships.

With the need for infrastructure outstripping the Government's ability to fund it, Craigs Investment Partners' says its New Zealand Social Infrastructure Fund will be a sound way for New Zealanders to invest up to $125 million for public-private partnerships for improving taxpayer assets.

The target return is 11 per cent per year but the focus is on long-term investment partnerships with the Government, as opposed to generating returns short term.

The money would be invested in the Public Infrastructure Partners (PIP) programme, managed by Morrison and Co, managers of airport and infrastructure company Infratil, alongside $100m invested by the New Zealand Superannuation Fund.

Hamilton based Craigs investment advisor Stuart Anderson said there had been no confirmed projects as yet but gave the new high school being looked at for Rototuna as an example of an ideal investment candidate. However, people would not be investing in singular projects but in many different ones around the country.

Mr Anderson described the investment as a alternative to property investment.

With a minimum investment of 20,000 $1 shares, PIP fund general manager Peter Coman said the fund was targeted at "experienced investors who understand these sorts of products".

The initial offer was for 50 million shares, with oversubscriptions available for another $75m worth.

Council for Infrastructure Development chief executive Stephen Selwood said the fund offered a new investment option which may replace the finance company industry.

"This provides an investment stream with more opportunity for revenue growth than is possible through traditional bank or Government bond markets."

Mr Coman said they had no transactions to announce yet, but were working on Government assertions they were keen to pursue partnerships with the private sector.

The fund was aimed at projects involving non-commercial "social" assets such as schools, hospitals, universities and community housing as opposed to revenue generating assets like toll roads.

Mr Coman said a central risk was competition from other infrastructure developers in New Zealand and offshore.

Craigs Investment Partners managing director Frank Aldridge said trading would be done internally by them, with market information posted on a website and sent to investors regularly.

- © Fairfax NZ News