QIC does sums and would pitch in for infrastructure

G O V E R N M E N T - OWNED fund manager the Queensland Investment Corporation says it would consider investing in multibillion- dollar infrastructure to support the controversial Adani mega- mine.

Chief executive Damien Frawley ( pictured) said the QIC – whose major clients include the defined benefit superannuation scheme for Queensland public servants – was keen to explore infrastructure opportunities around the state.

Mr Frawley said the QIC had not yet been approached about a possible investment in the Adani project and would not be interested in the Carmichael mine itself. “But the infrastructure pieces of Adani would be interesting for us to explore ... if it fitted within the return rates we are seeking,” he said.

That could include the construction of a 500km rail corridor from the Galilee Basin to the coast and expansion of coal export terminals at Abbott Point.

The QIC is likely to become the target of protests by activists who are already targeting the offices and branches of banks which have refused to rule out funding for the project.

Mr Frawley said the fund manager would also look at Brisbane’s $ 5.4 billion Cross River Rail initiative on be- half of its client base, which is now evenly divided between government- related and private clients.

“It’s a piece of infrastructure we would be very keen to explore,” he said.

“The funding is the area that government is trying to solve at the moment – where does the money come from? I think there’s an opportunity for private capital to participate if the economics of that investment are favourable.’’

The QIC, which was founded in 1991 with $ 7 billion of funds under management, has built up a $ 79 billion portfolio of assets and investments.

Those range Queensland from 14 shopping centres – including Domain Central in Townsville – and a dozen retail malls in the US to ownership of carparks at Ohio State University.

The QIC controls one of New Zealand’s biggest electricity and gas networks, has a stake in Thames Water, which supplies water to millions of Londoners and a share of a Canadian medical research facility.

As part of a push towards greater diversification, the QIC last year paid $ 256 million for 80 per cent of the North Australian Pastoral Company ( NAPCO) – the country’s third largest beef farmer covering 5.8 million hectares and 180,000 cattle.

Mr Frawley said the QIC would turn NAPCO from a cattle producer to a vertically integrated beef company co- ordinating the supply chain from paddock to plate. Logical linked opportunities in freight transport infrastructure and water supply initiatives would be examined.

The beef acquisition was made with a keen eye to the potential growth in the Asian market for Australian produce – agribusiness is one of four key strategic areas for QIC.

The others are health care services to meet the needs of an ageing population here and overseas, international education including student accommodation and tourism infrastructure.