Forth Ports: an attractive direct investment in offshore infrastructure
Cbus has made its first direct international infrastructure investment, partnering with four other like-minded global pension funds to take ownership of Forth Ports.
Forth Ports, Port of Grangemouth
Forth Ports is an owner and operator of eight commercial ports across the United Kingdom. With seven ports in Scotland and one in London, they benefit from locations close to the North Sea oil and gas reserves, and access to the English Channel.
Forth Ports has many characteristics that make it an attractive investment for Cbus including:
- the ports are freehold properties with strong market positions and growth opportunities
- their diversified, stable cash flow has demonstrated how the business can navigate periods of low economic performance without major impact to revenue
- partners are aligned to deliver on Cbus’ responsible investment priorities and values which we believe is integral to delivering sustainable long-term value creation for our members.
The Port of Tilbury in London has acquired an additional 152 acres to expand the terminal.
It will be operational by mid-2020 and is already at capacity with customer contracts in place that will create long term income. Given the geographical advantage Tilbury has, the port is forecast to generate around 20% of the Forth Ports total revenue over the next decade.
Infrastructure assets like Forth Ports will help Cbus to deliver stable, long-term returns to members into the future.