Sumitomo Mitsui Trust Bank (SMTB) will acquire a 15% stake in infrastructure investment manager Morrison and commit an initial US$500 million to two of the firm’s investment strategies, marking a deeper push into global infrastructure investing.
The companies said on Tuesday that the value of the equity stake is expected to be in the tens of billions of yen, although no further financial details were disclosed.
Under the partnership, Morrison will become SMTB’s preferred global infrastructure manager. Both parties also plan to jointly raise third-party capital for infrastructure investments and develop new investment products, with a target of managing US$1.5 billion in client assets across Japan and overseas.
The collaboration comes as Japanese investors increasingly seek higher-yielding assets amid the return of inflation, boosting interest in alternative investments such as infrastructure.
Morrison Chief Executive Officer Paul Newfield said the changing macroeconomic environment had made infrastructure an increasingly attractive asset class for Japanese investors.
“As the macro environment has shifted, it’s natural that Japanese capital shifts towards more active products and higher returning strategies.”
“We felt the time was ripe for infrastructure,” he said.
The companies also aim to attract more international capital into Japanese infrastructure projects, particularly in sectors such as data centres and renewable energy, where funding demand has risen.
SMTB’s Head of Business Development Team in the Corporate Planning Department, Satoshi Itagaki, said: “In private assets, particularly in infrastructure, we have not had sufficient engagement with overseas investors.”
“By leveraging Morrison’s expertise and network, we hope to attract foreign capital into Japan,” he added.
Reuters
