John Laing commits to increase stake in Australia’s Sydney Light Rail to 95% 

John Laing Group ("John Laing"), a leading international investor and active manager of core infrastructure assets, today announces that it has increased its commitment in the Sydney Light Rail (SLR) network to a ninety-five per cent majority stake. This follows John Laing’s agreement to acquire Aware Super’s 62.5% interest in the public private partnership which operates the network. The acquisition is subject to typical terms and conditions being met and is expected to complete before the end of Q4. 

John Laing currently holds a 32.5% stake in ALTRAC, the partnership that delivered and now operates SLR on behalf of the NSW Government. John Laing has been actively involved in the project since commencement in 2014, from initial construction through to the management of the successful mass transport system it is today. Over 40 million trips per year are taken on this network, which has also had a transformative effect on central Sydney’s streetscape.  

Further growth of the SLR network is proposed. This includes ALTRAC’s proposal for an 11km extension of the network along Parramatta Road to Green Square via Central Station. This extension would support housing investment, reinvigorate Parramatta Road and connect people to jobs, education, healthcare and more. This proposal is subject to ongoing discussion and consideration by Transport for NSW.

In addition to its long-term investment horizon, John Laing brings active management expertise including the technical skills and track record needed to deliver and operate complex transit projects.  

Andrew Truscott, Chief Executive of John Laing, said: “Our increased stake reflects our commitment to Sydney Light Rail, which is one of our most highly regarded assets. We are incredibly proud to have played a part in developing this city shaping initiative and are delighted to be playing an even greater part of its future.” 

Andy Haining, Co-Head of APAC at John Laing, said “Sydney Light Rail is a landmark project that continues to deliver outstanding outcomes for passengers and has enhanced the communities through which it operates. We are excited to increase our long-term commitment to SLR and look forward to continuing to work alongside Transport for NSW and our consortium partners to deliver outstanding service for an ever-increasing passenger base.” 

Aware Super Head of Infrastructure Mark Hector said the Fund was proud of its decade-long investment and contribution to ALTRAC’s growth and achievements.

“We have invested in ALTRAC on behalf of our 1.1 million members to create a critical transport infrastructure project that will provide community benefits for generations to come,” he said.

“Now that Sydney Light Rail is functioning well the time is right for us to recycle that capital into other value-add infrastructure projects for the benefit of our members and society. We have enjoyed our close equity relationship with John Laing and have every faith that with their experience and track record they will continue to ensure Sydney Light Rail operates successfully.”

SLR is a vital component of Sydney’s public transport system, helping to ease traffic congestion and reduce vehicle emissions - with each light rail vehicle able to carry up to 450 passengers, the equivalent of nine buses. The network has transformed George Street and attracted investment in property and housing with over $35 billion of investment across 1,700 sites along the corridor since the project’s announcement.

SLR has strong environmental credentials, enticing people out of cars and onto public transport. The network’s sustainability focus includes solar panels installed on depot roofs and the use of regenerative breaking on the L2 & L3 light rail vehicle fleet. The light rail vehicles will be powered by 100% renewable energy by 2025, further aligning the asset to a net zero future.

To date, John Laing has invested over 1BN AUD in Australia and has been part of the most significant PPP projects across the country, including Melbourne’s North East Link and the Melbourne Metro; Queensland’s New Generation Rollingstock; Perth’s Optus Stadium and the New Royal Adelaide Hospital.   

John Laing was advised by King & Wood Mallesons & Deloitte.