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Craigs partners Morrison in retail social infrastructure fund

Monday November 2, 06:51 PM

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Craig Investment Partners is working with Morrison & Co to market a fund targeted at retail investors to invest in schools, prisons, hospitals and other "social infrastructure".

Investors are being asked to pre-register their interest through Craigs for the fund, which is likely to launch in the new year.

The fund will invest in the recently announced Morrison & Co Public Infrastructure Partnership Fund (PIP fund).

It is designed to allow individual investors to participate alongside institutional investors in the building of schools, corrections facilities, student accommodation, social housing, hospitals and other public service facilities through public-private partnerships (PPPs).

Morrison & Co said it achieved first close on the PIP Fund today, with the New Zealand Superannuation Fund confirming a previously announced $100 million commitment.

During the next 12 months Morrison & Co will talk to institutional investors about investing in the PIP fund.

"We are now focused on investing in productivity-enhancing New Zealand social infrastructure opportunities," said Marko Bogoievski, Morrison & Co chief executive.

Peter Coman, managing director of the PIP fund said the fund was not about buying privatised assets. It was about PPPs. Treasury had put out guidelines on how they could operate.

"It is a procurement model," he said.

"We are looking to see that the Government starts to consider PPPs as a procuring alternative," he said.

Such partnerships were common in other countries.

Typically under a PPP the private sector undertakes to design, construct, maintain and finance an asset under a long-term contract with the public sector.

The public sector pays a regular charge for use, and at the expiry of the contract term ownership of the asset transfers to it.

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