InfraMed Invests in Turkish Port
InfraMed, an innovative EUR 385 million infrastructure fund targeting the Southern Mediterranean region, sponsored by EFG Hermes and major European and regional institutional investors, invests in Iskenderun Port in Anatolia
InfraMed, an infrastructure investment fund that capitalises on the Mediterranean region’s ongoing need for infrastructure development, has acquired a 20% stake in Limak Iskenderun, the special purpose vehicle (SPV) that will operate and develop Iskenderun Port in Anatolia under a 36-year concession. The deal marks the fund’s first entry into the promising Turkish market.
“This landmark transaction demonstrates our team’s ability to close attractive deals and participate in developing the region’s infrastructure,” said Karim Moussa, Managing Director at EFG Hermes and Member of the Investment Committee of InfraMed. “Infrastructure is a long-term and stable asset class, offering regional investors an appealing proposition in the current dynamic market environment.”
The stake was acquired from leading Turkish industrial conglomerate, Limak, which will continue to hold the balance of the equity. Limak Iskenderun won the port concession as part of the government’s privatization program in December 2011. Currently a general cargo port, Limak Iskenderun will invest in the facility to transform it into a leading container terminal with a phase 1 capacity in excess of 1.3 million TEU per annum.
“InfraMed has entered its operational phase and expects to announce, in the coming months, additional investments which are now at the advanced stages. Fundraising activities will also commence shortly,” said InfraMed Chairman of the Investors Board, Franco Bassanini. “InfraMed will play an important role as an instrument for cooperation between Europe and the countries of North Africa, the Levant and Turkey in the crucially important Mediterranean basin.”
InfraMed is a long-term infrastructure investment fund focused on the Southern and Eastern Mediterranean regions, which have some of the highest economic growth rates with the fastest population growth and youngest population worldwide. The historical under-investment of the infrastructure sector magnified by the increasing urbanisation trends and rising standards of living have resulted in enormous regional needs for project developments in transportation, energy, urban infrastructure.
“We are very pleased to be investing alongside Limak and working together to make this project a success both for the region and for investors,” said InfraMed Chief Executive Officer Frederic Ottavy. “The potential to work with strong partners with a proven track record is a key element in our assessment of investment opportunities, and we believe the complementary skills of our two organisations create a strong combination.”
The fund was launched in May 2010 by five leading European and regional institutional investors: EFG Hermes (Egypt), the European Investment Bank (Luxembourg), Caisse des Dépôts et de Consignations (France), Cassa Depositi e Prestiti (Italy), and Caisse de Dépôts et de Gestion (Morocco). The fund has a target size of c. EUR 1 billion, and has recently appointed Deloitte to assist with further fundraising.
