Danish labour-market pension fund PensionDanmark said it is investing in Angel Trains, the largest train leasing company in the UK, as part of a consortium led by infrastructure specialist investment manager AMP Capital.

AMP Capital, which already owned a 25% stake in the rolling stock company before the deal, is leading a consortium including PensionDanmark, a subsidiary of the Abu Dhabi Investment Authority, an Asian institutional investor, and Swiss Life Asset Managers.

The group of investors has agreed to buy what AMP Capital described as “a significant additional stake” in Angel Trains from Arcus European Infrastructure Fund 1.

As part of the sale by the fund, Canada’s Public Sector Pension Investment Board (PSP Investments) is buying an extra stake in Angel Trains, raising its holding in the company to 30% from 16% before.

PensionDanmark said this was the first time it had invested in this type of asset.

Claus Lyngdal, head of alternative investments at the pension fund, said: “This is a new type of investment which will add to diversification and ensure a broader spread of risk within our infrastructure portfolio.”

The UK company has around 4,500 train vehicles which it leases to train operating companies in the UK.

Lyngdal said the lease terms were long, and this secured a stable income for Angel Trains and therefore a good return for PensionDanmark’s members over a many years.

Following the deal, AMP Capital said it would own a majority stake in the UK company on behalf of its managed funds and clients.

Boe Pahari, global head of infrastructure equity at AMP Capital, said: “We have come to know the asset very well during our seven years of ownership and we and our investors like its long-term contracted revenue, stable cash flows and strong growth opportunities.” 

Angel Trains was the largest asset held by AMP Capital’s Global Infrastructure Fund, which was launched in October 2014, he said.

PensionDanmark has DKK18bn (€2.4bn) invested overall in direct and indirect infrastructure investments, and total pension assets under management of DKK180bn.

AMP Capital was advised by CMS Cameron McKenna on the legal side of the deal, by PriceWaterhouseCoopers on financial and tax matters, SDG on commercial and technical issues and by Macquarie Capital for mergers and acquisitions.

Meanwhile, legal adviser to Arcus European Infrastructure Fund 1 was Freshfields Bruckhaus Deringer, the financial and tax adviser was Ernst & Young, technical adviser was Interfleet and the commercial adviser was Quasar Associates.

Topics