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AllianzGI nears first close for UK infrastructure debt fund

UK infrastructure projects vehicle could raise up to £500 million as AllianzGI reveals it has committed £1bn to projects so far.

Allianz Global Investors is nearing a first close for its second UK Infrastructure debt fund, which will target primary brownfield and greenfield core assets across the transport, energy and social infrastructure sectors.

“We are delighted to launch our second sterling infrastructure debt fund, which is approaching its first close,” Adrian Jones, UK Infrastructure debt director, commented. The vehicle, now officially launched, was first announced in January. A target for it has yet to be disclosed, but a spokeswoman told PDI’s sister title Infrastructure Investor then that the team was expecting to raise between £250 million ($311 million; €290 million) and £500 million, “in line with strong client demand”.

That would be likely to bring it past the total it garnered for its first UK infrastructure debt fund, which reached its final close on £265 million in September 2015. The vehicle launched in the summer of 2014 with a £500 million target.

AllianzGI, a pioneer of infrastructure debt, has invested more than £1 billion in UK infrastructure projects on behalf of its clients. That includes the Aberdeen Western Peripheral Route and M8 road projects in Scotland, university accommodation in Hull, Nottingham and Exeter, the A1/A4/A5/DBFO2 project in Northern Ireland, Dover Port and M6 Toll road.

The UK investments are part of more than £9 billion invested in 45 projects across 14 countries since 2012. The firm has closed 10 deals globally this year alone.