Brookfield Infrastructure Partners

Last updated
Brookfield Infrastructure Partners L.P.
Type Publicly traded partnership
NYSE:  BIP
TSX:  BIP.UN
NYSE:  BIPC
TSX:  BIPC
Industry Infrastructure asset management
FoundedJanuary 14, 2008;16 years ago (2008-01-14)
Headquarters
Toronto, Ontario
,
Canada
Area served
Worldwide
Key people
Sam Pollock (CEO)
Products Utilities, transport, energy, communications, infrastructure
RevenueIncrease2.svg US$3.54 billion (2017) [1]
Decrease2.svg US$1.1 million (2017) [1]
Increase2.svg US$574 million (2017) [1]
Total assets Increase2.svg US$29.5 billion (2017) [1]
Total equity Increase2.svg US$13.5 billion (2017) [1]
Owner Brookfield Asset Management (30%)
Website bip.brookfield.com
Footnotes /references
[2]

Brookfield Infrastructure Partners L.P. is a publicly traded limited partnership with corporate headquarters in Toronto, Canada, that engages in the acquisition and management of infrastructure assets on a global basis.

Contents

Until a spin-off in January 2008, Brookfield Infrastructure was an operating unit of Brookfield Asset Management, which retains a 30 percent ownership and acts as the partnership's general manager. [3] The company's assets carried a book value of US$21.3 billion, on December 31, 2016. [4]

In March 2020, Brookfield Infrastructure Partners (BIP) created Brookfield Infrastructure Corporation (BIPC), an entity that provides certain institutional investors who cannot hold a Bermuda-based Limited Partnership the ability to access the portfolio of BIP assets. In addition, by issuing eligible dividends rather than partnership distributions, BIP felt that BIPC would provide a more attractive and favourable tax treatment for retail investors. [5] BIPC began trading on the Toronto and New York Stock Exchanges on March 31, 2020.

Brookfield Infrastructure Partners owns and operates a global network of infrastructure companies in utilities, transportation, energy and communications infrastructure. It invests in transmission and telecommunication lines, toll roads, ports and pipelines. The company has an equity market capitalization of about US$17.7 billion with an investment-return target of 12 to 15 percent. [1] [6] Its annualized total returns since inception have been 18% on the NYSE and 26% on the TSX. [4]

Sam Pollock is the chief executive officer of Brookfield Infrastructure Partners. [7] He has held this position since 2006, and has been with Brookfield Asset Management since 1994. [8]

Operations

After the spin-off from Brookfield Asset Management, Brookfield Infrastructure operated timber properties and electricity transmission lines. In September 2008, the company announced it would expand and diversify its global operations by buying infrastructure holdings from distressed Babcock & Brown, thus adding approximately US$8 billion of assets under management. [9] [10]

In 2010 the company completed a merger with Australian company Prime Infrastructure in which it held a minority interest. [11]

In 2012, the company participated in a joint venture with Spain's Abertis Infraestructuras to purchase 60 percent of toll operator Obrascon Huarte Lain Brasil in a deal valued at US$1.7 billion. [12]

Also in 2012, the company and its partners agreed to acquire the remaining 45% of the AVN toll road in Chile for a total purchase price of $590-million, after making an initial investment in 2011. [13]

In 2014, the company and its investment partners agreed to acquire 50% of the French telecommunications units of TDF for $2.2 billion. [14]

In 2016, the company announced agreements with Qube Holdings and other investment partners to buy the port assets of Asciano Limited, an Australian rail and port operator, for US $6.55 billion, (A$8.9 billion). [15] The container port assets remained under the Patrick brand in a joint venture with Qube, while the bulk and automotive port services assets rebranded to Linx Cargo Care Group under a Brookfield-led consortium of investment partners. That same year, the company also announced that it and its investment partners would acquire a 90% stake in a Brazilian natural gas pipeline from Petroleo Brasileiro SA for US $5.2 billion. [16]

The company made over $2 billion of new investments in 2016, including its first ventures into businesses in Peru and India. The company also invested in organic projects valued at $850 million, growing the size of its utilities rate base, road and rail networks and energy systems. [17] [18]

In 2022, the company announced an initiative with Intel to jointly invest up to $30 billion at a chip manufacturing plant in Chandler, Arizona. [19]

As of December 31, 2022, BIP declared majority ownership and/or controlling voting interest in the following companies: [20]

CountryCompanySectorEffective OwnershipVoting Interest
Australia Arc Infrastructure WA Pty Ltd Rail transport 100%100%
Australia Linx Cargo Care Group Pty Ltd Port operations 27%67%
AustraliaRuby Pooling Hold Trust Data centres 29%100%
BrazilNova Transportadora do Sudeste S.A. ("NTS") [21] Energy Infrastructure 31%92% [22]
CanadaEnercareHome and commercial energy services26%100%
Canada Inter Pipeline Ltd. Energy Infrastructure56%100%
CanadaNorthRiver Midstream Inc.Energy Infrastructure29%100%
CanadaWarwick Gas Storage L.P.Energy Infrastructure25%100%
ColombiaVanti S.A. ESPEnergy Infrastructure21%75%
GermanyThermondo GmbH Residential energy infrastructure 11%51%
IndiaCrest Digitel Private Ltd Telecommunications 17%62%
IndiaPipeline InfrastructureEnergy Infrastructure21%75%
IndiaRayalseema Expressway Private Limited Toll Roads 29%95%
IndiaSimhapuri Expressway LtdToll Roads29%95%
IndiaSummit Digitel Infrastructure Private LtdTelecommunications17%62%
PeruRutas de Lima S.A.C. [23] Toll roads17%57%
SingaporeBIF India Holdings Pte LtdToll roads40%93%
United KingdomBOXT LtdResidential infrastructure15%60%
United KingdomBrookfield Port Acquisitions (UK) LtdPort Operations59%100%
United KingdomBUUK Infrastructure No 1 LimitedEnergy Infrastructure80%80%
United KingdomWIG Holdings I LimitedData Centres24%98%
United StatesDawn Acquisitions LLCData Centres29%100%
United States [a] Genesee & Wyoming [24] Rail Transport9%72%
United StatesLodi Gas Storage LLCEnergy Infrastructure40%100%
United StatesRockpoint Gas Storage Partners L.P.Energy Infrastructure40%100%

The following table lists prior acquisitions by BIP:

CountryCompanySectorOwnership
Australia Asciano Limited [25] Rail and port logistics 50% [26]
BrazilArteris, SA [27] Toll roads50% [28]
BrazilVLI [29] Transmission 26.5%
BrazilOdoya Transmissora de Energia S.A.
Esperanza Transmissora de Energia S.A.
Jose Maria de Macedo de Eletricidade S.A
Giovanni Sanguinetti Transmissora de Energia S.A.
Veredas Transmissora de Eletricidade S.A.		 Transmission 31%
Canada Enwave District energy
CanadaMetergy Solutions Utility submetering
Chile Transelec [30] Energy Transmission 30%
FranceTDF [28] Communication tower infrastructure50%
North America (Canada and USA)Niska Gas Storage [31] Gas storage100% [32]
United States Natural Gas Pipeline Company of America [33] Gas storage and transmission 50%

Notes

a. ^ Although headquartered in the United States, Genesee & Wyoming also has rail and logistics operations in Canada, the U.K., and continental Europe.

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References

  1. 1 2 3 4 5 6 "2017 Annual Report" (PDF). Brookfield. 31 December 2017. Retrieved 27 June 2018.
  2. ↑ "2016 Annual Report" (PDF). Brookfield Infrastructure Partners. 31 December 2016. Retrieved 14 May 2017.
  3. ↑ "Brookfield Infrastructure Partners (BIP): A High-Yield, Fast-Growing Utility". ValueWalk. 2017-03-13. Retrieved 2017-05-14.
  4. 1 2 "2016 Brookfield Infrastructure Annual Report" (PDF). 31 December 2016. Retrieved 14 May 2017.
  5. ↑ "Questions and answers regarding the special distribution of Brookfield Infrastructure Corporation shares". SEDAR. November 13, 2019.
  6. ↑ Sanzillo, Tom; Chung, Yulanda; Buckley, Tim (February 2017). "Making the case for Norwegian Sovereign wealth fund investment in renewable energy infrastructure" (PDF). IEEFA.org. Institute for Energy Economics and Financial Analysis. Retrieved 14 May 2017.
  7. ↑ Editorial, Reuters. "Stock Quotes & Company News | Reuters.com". Reuters. Retrieved 2017-05-14.{{cite web}}: |first= has generic name (help)
  8. ↑ "Our Manager". Brookfield Infrastructure Partners. Archived from the original on 21 March 2016. Retrieved 12 April 2016.
  9. ↑ "Brookfield Asset Management and Brookfield Infrastructure Partners Completes Recapitalization of Babcock & Brown Infrastructure". Marketwire. Retrieved 22 July 2010.
  10. ↑ Lindsay, Bill (9 October 2009). "Babcock & Brown Infrastructure Sets Plan". The Wall Street Journal. Retrieved 22 July 2010.
  11. ↑ "Brookfield Infrastructure Announces Closing of Merger With Prime Infrastructure and Implementation of Normal Course Issuer Bid" . Retrieved 2017-05-14.
  12. ↑ "Brookfield Infrastructure bets on Brazil". Financial Post. Retrieved 2017-05-15.
  13. ↑ "Brookfield Infrastructure retooling its portfolio". The Globe and Mail. Retrieved 2017-05-15.
  14. ↑ "Canada's Brookfield buys 50 pct of TDF's French unit". Reuters. 2017-11-06. Retrieved 2017-05-15.
  15. ↑ Wells, Peter (2016-03-14). "Qube and Brookfield consortium snare Asciano". Financial Times. Retrieved 2017-05-15.
  16. ↑ "Brookfield-led group buys stake in Petrobras's NTS for US$5.2B - Article - BNN". BNN. 2016-09-23. Retrieved 2017-05-15.
  17. ↑ Lawlor, John (2017-02-15). "Brookfield Infrastructure Partners Firing On All Cylinders". Seeking Alpha. Retrieved 2017-05-15.
  18. ↑ DiLallo, Matthew (2017-05-15). "Energy Acquisitions Fuel Brookfield Infrastructure Partners L.P.'s Fourth-Quarter Results -- The Motley Fool". The Motley Fool. Retrieved 2017-05-15.
  19. ↑ "Intel Introduces First-of-its-Kind Semiconductor Co-Investment Program". Intel. Retrieved 2022-08-24.
  20. ↑ "2022 Annual Report" (PDF). Brookfield Infrastructure Partners.
  21. ↑ "Brookfield Infrastructure Announces Closing of South American Natural Gas Transmission Utility Transaction". Market Watch. 4 April 2017. Archived from the original on 8 April 2017. Retrieved 14 May 2017.
  22. ↑ "Brookfield-led group buys stake in Petrobras's NTS for US$5.2B". BNN. 23 September 2016. Retrieved 14 May 2017.
  23. ↑ "Odebrecht sells 57% of Rutas de Lima to Brookfield". Valor International. 27 June 2016. Retrieved 14 May 2017.
  24. ↑ Genesee & Wyoming sold in $8.4 billion deal Archived 2019-07-01 at the Wayback Machine Trains July 1, 2019
  25. ↑ Wells, Peter (15 March 2016). "Qube and Brookfield consortium snare Asciano". Financial Times. Retrieved 14 May 2017.
  26. ↑ Wiggins, Jenny (15 March 2016). "Asciano board recommends formal $9.05b takeover bid from Qube and Brookfield". The Sydney Morning Herald. Archived from the original on 26 May 2017. Retrieved 14 May 2017.
  27. ↑ Bowen, Mick (19 May 2016). "Abertis, Brookfield boost stake in Arteris". Latin Finance. Retrieved 14 May 2017.
  28. 1 2 "Canada's Brookfield buys 50 pct of TDF's French unit". Reuters. 6 November 2014. Retrieved 14 May 2017.
  29. ↑ "Vale to sell some VLI shares to Brookfield for $842 mln". Reuters. 23 December 2013. Retrieved 14 May 2017.
  30. ↑ Biller, David (3 July 2006). "Brookfield-led consortium completes Transelec takeover". BNamericas. Retrieved 14 May 2017.
  31. ↑ "Niska Gas Storage to Be Acquired by Brookfield in $911.9M Deal (NKA) (BIP)". Street Insider. 15 June 2015. Retrieved 14 May 2017.
  32. ↑ "Niska Gas Storage Partners LLC Agrees To Be Acquired By Brookfield Infrastructure". Yahoo Finance News. 15 June 2015. Retrieved 14 May 2017.
  33. ↑ DiLallo, Matthew (26 September 2016). "Brookfield Infrastructure Partners L.P.'s Best Business Segment in 2016 so far". District Energy. Retrieved 14 May 2017.[ permanent dead link ]
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