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Sojitz-backed Capella eyes Middle East PPPs

20 February 2025

 

Public-private partnership (PPP) projects across the Middle East will be a key focus for Sydney-headquartered infrastructure developer and investor Capella Capital, according to two sources familiar with the matter.

"The Middle East … is one of the potential markets to expand the business portfolio of Capella," one of the sources said.

MEED understands that the region is included in Capella's medium- to long-term growth strategy.

This development follows the acquisition of the company by Japanese infrastructure investor Sojitz in January this year.

Valued at AUD470m ($300m), the acquisition is targeted for completion in June this year.

Sojitz says the acquisition is in line with its efforts to "strengthen its large-scale infrastructure development capability in the energy, social and transportation infrastructure fields" in Australia, as well as in global markets.

It will also support Sojitz's transformation into an "integrated business model that manages projects from initial formation to asset management".

Capella will likely follow the entry into the Middle East PPP market of fellow Australian infrastructure investor, Plenary Group.

Abu Dhabi holding company ADQ acquired a 49% stake in Plenary in April 2024, including all shares owned at the time by the Canadian pension fund Caisse de Depot et Placement du Quebec.

In a statement issued in September last year, ADQ said the two firms plan to establish a co-investment platform, which will focus on public and social infrastructure opportunities "in high-growth geographies including the GCC region, the Middle East and Central Asia".

In August last year, the Abu Dhabi Investment Office (Adio) appointed a team of Plenary, Belgian firm Besix and the local Mazrui International for a contract to develop and operate a 3,250-bed student accommodation complex and associated facilities at Khalifa University in Abu Dhabi. 

Plenary is also part of a consortium that is understood to be planning to bid for the first two packages of the $22bn Dubai Strategic Sewerage Tunnels project.  

In April 2023, Saudi Arabia launched a pipeline of 200 PPP projects in 17 sectors. Adio is responsible for coordinating PPP projects in Abu Dhabi, while Oman's Finance Ministry oversees the sultanate's planned PPP projects. 

Photo credit: Pixabay (for illustrative purposes only)

READ THE FEBRUARY MEED BUSINESS REVIEW

Trump unleashes tech opportunities; Doha achieves diplomatic prowess and economic resilience; GCC water developers eye uptick in award activity in 2025.

Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes:

> WATER & WASTEWATER: Water projects require innovation
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