Forum Archive Index - October 2000

["Tony Haddon" <haddon@E3.net.nz>]

Buy MIG (ASX)....read on....

Rgds,    Tony Haddon

Financial Close on Midland Expressway

MACQUARIE INFRASTRUCTURE GROUP                2000-10-02  ASX-SIGNAL-G

HOMEX - Sydney                                                        

+++++++++++++++++++++++++
Midland Expressway, the UK's first toll road and Macquarie
Infrastructure Group's largest overseas asset, reached financial
close on 29 September 2000.

Midland Expressway will be a new 44 kilometre six lane toll road
bypassing the city of Birmingham, England, and connecting with the M6
Motorway at both ends. The M6 through Birmingham is renowned as one
of the most chronically congested motorways in Britain with commuters
regularly experiencing long delays.

Midland Expressway will be one of the largest privately developed
toll roads in the world. At GBP835 million (around A$2.2 billion),
the project is larger than any toll road yet developed in Australia.

Macquarie Infrastructure Group (MIG) will initially hold a 75% stake
in the concession company (Midland Expressway Limited - MEL). MIG has
just acquired, (having been conditional on financial closure), an
additional 25% stake in MEL from the other MEL shareholder,
Autostrade, an Italian conglomerate involved in the toll road and
telecommunications industries.

MIG has also entered into put and call options with Autostrade under
which MIG is entitled to increase its stake in MEL to 100% eighteen
months after the road opens to traffic.

The effective price for both additional interests is approximately
the same as that paid for the original stake that was purchased from
Norwegian conglomerate, Kvaerner, in October 1999.

Under the base case assumptions, the projected internal rate of
return to MIG on the cash received from this investment is over 21%,
assuming MIG moves to 100% ownership in five years.

Commenting on the development, MIG's Managing Director, Anthony
Kahn, said "We are very pleased with both the conditions under which
the project is proceeding and MIG's additional equity stake. This is
an exciting project with significant upside, given the unique ability
of MEL to control toll pricing. Under the concession agreement, MEL
has the right to increase tolls entirely at its discretion."

MIG's 75% equity commitment is for GBP11O million (around A$289
million) of which GBP70 million (around A$184 million) has been
contributed. The remainder will be contributed at the date of opening
to traffic, expected to be in January 2004.

The banking syndicate is headed by the Bank of America and Abbey
National. Under the financing package, MEL shareholders have been
refunded their development costs to date. This amounted to
approximately GBP29 million (around A$76 million) each, which MIG has
used as part of its initial equity contribution.

Construction of the project will be undertaken by a consortium of
leading UK contractors under a fixed price, forty month contract. The
GBP486 million (around A$1.3 billion) contract is the largest single
road contract ever let in the UK. The consortium members are:

* Alfred McAlpine Plc; 
* Amec Plc; 
* Balfour Beatty Plc; and 
* Carillion Plc

The investment reinforces MIG's position as a significant participant
in the European privatised infrastructure market.

For further information, please contact:

Dennis Eagar 
ASSOCIATE DIRECTOR 
Macquarie Infrastructure Investment Management Limited 
Phone Work: 61 2 8232 6771 
Phone Home: 61 2 9954 1116 
Phone Mobile: 0414 345 176 (int: 61 414 345 176) 
E mail: deagar@macquarie.com.au