SINGAPORE: Temasek Holdings Pte, Singapore’s state-owned investment company, formed the city-state’s first trust for infrastructure investments and said it filed initial papers with the central bank to take the trust public.
CitySpring Infrastructure Trust will be Temasek’s key platform for infrastructure investments, Fai Au Yeung, who was hired as chief executive officer of trustee-manager CitySpring Infrastructure Management Pte, said in a statement.
Temasek, with US$83bil of assets under management, aims to boost returns by investing in transportation, utilities and communications. The Asian Development Bank estimates Asia will require US$250bil a year until 2010 to fund new infrastructure investment and maintain existing facilities.
“Economic development and rapid urbanisation have put increasing strain on infrastructure in many countries, resulting in investment opportunities,” Au Yeung said in the statement. “CitySpring intends to tap these opportunities and invest in a diversified range of infrastructure businesses.”
Temasek last year paid S$30mil (US$19.5mil) for 50% of Hyflux Ltd’s SingSpring Pte unit, which owns Singapore’s first seawater desalination plant. SingSpring is in the process of carrying out a restructuring under which the company will place all the assets in SingSpring Trust.
When the restructuring is completed, Hyflux will have 30% of SingSpring Trust and Temasek’s CitySpring will have the remaining 70%, according to Hyflux.
Temasek will have 28.5% of the shares upon listing, making it the single largest shareholder of CitySpring.
“Temasek will support CitySpring through our international reach and business network in the sourcing for acquisition opportunities,” Temasek managing director Margaret Lui said in yesterday’s statement. – Bloomberg