UniSuper, a pension fund for universities in Australia, has allocated A$1bn ($680mn) to invest in Vantage, the previous mobile towers enterprise owned by Vodafone. This move shows that Australian superannuation funds are now looking for investment opportunities beyond their home market.
UniSuper now owns 5% of Vantage Towers, joining other shareholders like Vodafone, KKR, Saudi Arabia’s Public Investment Fund, and activist Elliott Management. It’s part of a growing trend among Australian pension funds, which have a total value of A$3tn and are the world’s fifth-largest, to seek growth internationally.
Another major pension fund, Aware Super, opened an office in Europe last year and plans to invest A$16bn in Europe and the US over the next three years. AustralianSuper, the country’s largest pension fund, also has plans to spend £23bn in Europe and the US over the next five years.
UniSuper is already an active investor in Australian infrastructure, backing projects like the Sydney Airport privatization. However, this investment in Vantage Towers marks its first significant venture overseas. UniSuper believes that Vantage Towers is a solid infrastructure investment with good growth prospects.
Mobile towers have become attractive to infrastructure investors because they generate stable income from long-term leasing contracts. Vodafone created Vantage Towers to unlock value and sold a 50% stake to KKR, Global Infrastructure Partners, and the Public Investment Fund. Elliott Management also acquired a portion of Vantage’s voting rights.
Overall, UniSuper’s investment in Vantage Towers reflects the fund’s strategy to diversify its portfolio and seek long-term growth opportunities.
