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Mitsui and Challenger launch Emerging Market Infrastructure Fund

Japanese banking group Mitsui and Australian-based asset manager Challenger Financial Service Group have established the Emerging Market Infrastructure Fund targeting equity commitments of

Japanese banking group Mitsui and Australian-based asset manager Challenger Financial Service Group have established the Emerging Market Infrastructure Fund targeting equity commitments of USD1.2bn from global investors.

The fund will invest in a diversified portfolio of infrastructure assets such as power generation, electric and gas transportation, and railways in emerging market economies, with the intention of generating relatively stable income.

Mizuho Corporate Bank and Access Capital Advisers, an Australian retirement fund consultant, will also make investments as strategic partners. The fund has been launched with total equity commitments of USD175m, including the initial investments from Mitsui and Challenger.

While meeting the growing demand from investors worldwide infrastructure assets, Mitsui says the fund is also intended to contribute to the development of emerging economies by providing capital for infrastructure and facilitating rapid economic growth.

Mitsui, an experienced long-term owner of infrastructure assets in emerging markets, will draw upon its global network to source assets with a solid operational base and significant growth potential.

Challenger also has a strong track record in infrastructure fund management. Mitsui and Challenger will establish a Singapore-based investment management company to provide investment advice to the fund.

The Emerging Market Infrastructure Fund is the latest specialised investment management product from Mitsui, following the Japan Logistics Fund, a J-Reit listed on the Tokyo Stock Exchange since 2005 and the only such product to date specialised in logistics facilities. Mitsui is also the first Japanese company to launch a Singapore Reit.

Challenger, which is listed on the Australian Stock Exchange, has particular expertise in infrastructure, real estate and fixed income and the development of specialist funds for institutional and retail investors.

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