The Canada Pension Plan Investment Board will make a A$525-million (C$516-million) infrastructure investment in Australia.
A consortium comprising the CPPIB, Transurban Group and Queensland Investment Corp. will build and operate a new tolled tunnel motorway located northwest of Sydney. The CPPIB’s investment represents a 25% ownership interest.
Called NorthConnex, the tunnel motorway will connect Sydney’s northern suburbs with the road network surrounding the city, reducing freight traffic congestion on an existing arterial road and improving traffic flow.
Spanning nine kilometres, this will be the longest road tunnel project in Australia. Construction of the tunnel will begin in early 2015 and is expected to be completed in 2019.
The A$2.9-billion project will be funded by the consortium partners and by the New South Wales and Australian governments.
The CPPIB owns a 25% interest in the Westlink M7 toll road in Sydney through its acquisition of Intoll Group in 2010.
The CPPIB has invested C$7.1 billion in real estate, infrastructure, public equities, real estate investment funds and direct investments in Australia as of Sept. 30, 2014.