Simplicity sets up InfraKiwi to own and operate NZ infrastructure, eyes NZX listing

KiwiSaver provider Simplicity has established a new company, InfraKiwi Limited, to own and operate New Zealand infrastructure assets for the long term including energy and transport.

It aims to list on the NZX once the vehicle reaches scale and will also target water, data and social assets.

Simplicity says InfraKiwi will be initially seeded with private-equity investment from its KiwiSaver and Investment Fund schemes and will operate with a long-term ownership focus.

It comes as the Infrastructure Commission has identified about $210 billion of required infrastructure projects over coming decades.

Simplicity chief economist Shamubeel Eaqub has estimated that, if current onshore/offshore allocations are maintained, KiwiSaver managers could have up to $295 billion available to invest in New Zealand over the next 25 years.

Simplicity managing director Sam Stubbs says the long-term goal is for InfraKiwi to be a listed company that all Kiwis can invest in, directly or via their KiwiSaver and investment funds.

“We want its ownership to be restricted to NZ shareholders. With all the capital KiwiSaver schemes, Iwi and individuals have to invest, we don’t think funding from offshore investors is required,” he says.

“And by focusing on long-term operational excellence, and acquiring and operating large-scale infrastructure, we hope InfraKiwi will eventually become New Zealand’s biggest, and most boring, company.”

After listing, InfraKiwi would seek inclusion in an S&P/NZX index to broaden investor participation via indexed funds. The company’s constitution will include a golden share held by a special-purpose trust to protect its long-term structure and purpose. The initial strategy is to acquire and operate existing or recently completed assets and deliver stable dividend income.

Simplicity chair Rob Everett says InfraKiwi is seeking to bridge the gap between our biggest need for investment – infrastructure – and the growing pools of capital available from KiwiSaver schemes, Iwi, other institutional and individual investors.

“We think matching the long-term infrastructure needs of New Zealand, with the capital New Zealanders will save, will generate stable returns for investors and promote a thriving infrastructure sector supported by much-needed jobs.

“Without mechanisms like this, more of our savings will continue to be invested offshore, making investors money, but missing the opportunity to help fund productive assets at home.

“New Zealand is now building up enough collective savings to fund most of our own infrastructure, and InfraKiwi’s locally owned and controlled model provides an attractive infrastructure funding option for central and local government,” Everett says.

Foundation directors are Sarah Sinclair, Rob Everett (chair), Shamubeel Eaqub and Sam Stubbs. Cristiano Marantes, former head of the national energy innovation centre Ara Ake, has been appointed head of infrastructure.