Morrison announces $3.5 billion alliance with Japanese bank Sumitomo Mitsui

Wellington-based global infrastructure investment firm Morrison partnership has established a long-term partnership with large Japanese bank Sumitomo Mitsui Trust Bank (SuMiTB) valued at more than $3.52 billion (US$2b).

"This partnership is an important step in the continued development of our global business. SuMiTB is a highly respected institution with deep relationships in the Japanese market and an extensive global footprint," Morrison chief executive Paul Newfield said.

"Working in partnership with SuMiTB, we will be well-positioned to connect long-term Japanese capital with high-quality infrastructure opportunities across the globe."

The partnership includes:

An initial $880 million (US$500m) commitment to Morrison's global core plus and value-add strategies

A more than $2.64b collaboration agreement to support capital raising and develop new infrastructure investment products for Japanese and global investors

SuMiTB will take a 15 percent stake in Morrison with an issue of new equity

Newfield said the changing macro environment had made infrastructure a priority asset class for Japanese investors.

"Working in partnership with SuMiTB, we will be well-positioned to connect long-term Japanese capital with high-quality infrastructure opportunities across the globe," he said.

"SuMiTB's strong domestic corporate relationships and market-leading Japanese infrastructure investment capabilities will also provide Morrison's existing clients with improved access to rapidly expanding infrastructure deal opportunities in that market.

"The partnership strengthens our capital base, broadens our distribution reach and supports Morrison's next phase of growth - without changing who we are or how we invest."

Morrison chairperson Rob Morrison said SuMiTB was seen as a strategically aligned partner with similar goals and corporate culture.

"The partnership has also been structured to ensure Morrison maintains our established investment focus and independence. Importantly, our intergenerational ownership model, built around the cornerstone shareholding of the Lloyd Morrison Trust and broad-based employee equity participation, remains unchanged."

SuMiTB president Manatomo Yoneyama said the partnership closely aligned with its long-term objectives.

"The partnership will support Japanese investors in accessing high-quality global infrastructure opportunities," Yoneyama said.

"Our collaboration will also contribute to accelerating SuMiTB's expansion of infrastructure-related business in overseas markets.

"This includes the global distribution of our domestic diversified infrastructure funds and collaborative product development, leveraging both Morrison and SuMiTB's capabilities in the field."

The arrangements are subject to regulatory approvals closing conditions, with settlement expected before the end of the year.