The North American Middle-Market Opportunity

Infrastructure is a fundamental aspect of society that connects businesses, communities and people, helping to support economic growth and quality of life. However, investment in essential infrastructure in North America and globally is failing to keep pace with current and expanding needs, leaving much of the world’s roads, energy infrastructure, pipelines and water systems in disrepair.

We believe the private infrastructure opportunity in North America is sizeable and has the ability to offer investors an attractive investment profile.

Benefits of Investing in Infrastructure

Essential infrastructure assets are typically characterized by:

  • Resilience to variations in the economic cycle owing largely to the inelastic demand for irreplaceable services;
  • Strong barriers to entry typically resulting from regulation, a concession-based structure, or contractual frameworks;
  • Stable, long duration cash flows typically linked to measures of economic growth; and
  • A relatively low correlation to traditional fixed income and public equity investments.

Our portfolio includes:

Billy Bishop Toronto City Airport Passenger Terminal

 

Okanagan Wind

 

Steel Reef Infrastructure Corp.

 

Skyservice Investments Inc.

 

Creative Energy

 

AMPORTS Inc.

 

Billy Bishop Toronto City Airport Passenger Terminal

InstarAGF is a member of Nieuport Aviation Infrastructure Partners GP, a consortium of local and international infrastructure investors that acquired the passenger terminal at Billy Bishop Toronto City Airport in January 2015.

The terminal, which is a state-of-the-art facility newly constructed in 2010, is a premier essential transportation infrastructure asset with an established operating history, robust contractual framework and positive long-term outlook.

Billy Bishop Airport, which is owned and operated by PortsToronto, is the ninth busiest airport in Canada, serving approximately 2.7 million passengers in 2016. Overall, the airport is a major economic engine for the Greater Toronto Area, generating approximately $2.1 billion in total annual economic impact and supporting approximately 6,500 direct and indirect jobs. It is accessible to about 6.6 million residents within a one-hour drive. Billy Bishop Airport’s award-winning customer service is recognized year after year, most recently ranking as one of North America’s best airports in 2017 by Skytrax World Airport Awards. This ranking follows a series of awards earned in 2016, including a similar ranking from Skytrax in 2016 and being named the top airport in North America, and second globally, by the 2016 Airport Quality Awards. The airport was also ranked fourth Best International Airport by Condé Nast Traveler, and named one of the Top Most Beautiful Airport Approaches in the world by Private Fly.

With a focus on sustaining and elevating the passenger experience at the terminal, Nieuport Aviation is committed to building strong relationships with the airport’s stakeholders and to supporting its further development as a vital gateway for commerce and economic growth in the greater Toronto region.

Okanagan Wind

InstarAGF developed and operates two wind power projects in British Columbia’s Okanagan region totaling 30 megawatts of installed renewable energy capacity.

The two projects have been awarded 40-year electricity purchase agreements by BC Hydro, a creditworthy government agency.  Experienced construction and equipment providers were engaged under fixed-price contracts to construct and deliver the projects, which achieved commercial operations in early 2017.  The facilities generate approximately 100,000 megawatt hours of clean electricity annually, enough to power the equivalent of approximately 9,000 homes.

Notably, the projects have entered into Impact Benefit Agreements with local First Nation communities to provide access to job opportunities, annual benefit payments to the community, funds to support scholarships and continuing roles through the operations of the projects. 

Our wind projects establish a footprint for InstarAGF in British Columbia’s attractive renewable energy market, where favourable policies and growing electricity export opportunities to the U.S., among other drivers, suggest positive long-term dynamics and additional growth opportunities.

Steel Reef

InstarAGF has an investment in Steel Reef Infrastructure Corp., a privately held Canadian midstream energy service company with a diversified portfolio of high quality assets that provide value-added services for the production and processing of oil, natural gas and natural gas liquids.

Steel Reef, which was established in 2012, partners with mid-sized upstream exploration and production (E&P) companies by purchasing or constructing their midstream infrastructure.  Steel Reef’s management team has deep industry experience and a record of constructing, operating and optimizing midstream assets.

Steel Reef’s facilities are located in high quality formations within the Western Canadian Sedimentary Basin, which is one of the world’s largest reserves of oil and natural gas.  These facilities, which are essential energy infrastructure, generate stable cash flow that is primarily underpinned by contracts with well capitalized counterparties.

We believe the basins in which Steel Reef operates have strong economic fundamentals and low producer breakeven points, and that Steel Reef is well positioned for continuing growth.

Skyservice

InstarAGF owns a majority interest in Skyservice Investments Inc. (Skyservice), Canada’s leading provider of business aviation services operating out of facilities in Toronto, Montreal, Calgary and Ottawa. Frequently ranked among the top providers of Fixed-Base-Operations (FBO) services by industry publications such as Professional Pilot Magazine and Aviation International News Magazine, Skyservice also delivers aircraft management and maintenance services.

Skyservice’s business is characterized by high barriers to entry and creditworthy counterparties, and represents a strong foundation for further acquisitions as the FBO market consolidates. InstarAGF will partner with Skyservice’s management team to build the long-term value of the business, with a focus on world-class service, safety and security, and pursuing growth opportunities. We believe our investment in Skyservice enhances InstarAGF’s growing aviation infrastructure platform.

Creative Energy

InstarAGF manages a North American district energy platform through a 50/50 partnership with Creative Energy, a neighbourhood thermal energy utility company operating one of Canada’s largest district energy networks. The partnership will develop, construct, finance, renew and manage urban energy infrastructure in across Canada and the United States. Creative Energy, which currently operates 14 kilometres of distribution pipes serving more than 210 buildings in British Columbia, has achieved an energy reliability of about 99.9% over the last 50 years of operations.

With the shared experience of our two teams, Creative Energy Developments is well positioned for growth as a leader in energy efficiency and safe, sustainable energy solutions for communities.

AMPORTS Inc.

InstarAGF owns an interest in AMPORTS, Inc. (AMPORTS), a premier, award-winning automotive port logistics and processing company based in Jacksonville, Florida, alongside its Canadian and international co-investors.

AMPORTS is a vital link in the global transportation supply of many of the world’s largest automotive original equipment manufacturers (OEMs), providing customized, seamless logistical port-side services in vehicle processing, including rail loading and unloading, inspection, storage, accessory installations, and customizations, repairs and regulatory homologation services. AMPORTS, which directly owns approximately 50% of its land portfolio, operates from strategically-located facilities along major coastal zones in the United States and Mexico, thereby offering its customers superior access to land transport links and distribution networks in close proximity to major population centres.

With a focus on safety, quality, operational excellence and customer satisfaction, we believe AMPORTS is well positioned to expand and build on its 50-year legacy as an essential component of the North American automotive supply chain.

Our portfolio includes:

Billy Bishop Toronto City Airport Passenger Terminal

 

Okanagan Wind

Billy Bishop Toronto City Airport Passenger Terminal

InstarAGF is a member of Nieuport Aviation Infrastructure Partners GP, a consortium of local and international infrastructure investors that acquired the passenger terminal at Billy Bishop Toronto City Airport in January 2015.

The terminal, which is a state-of-the-art facility newly constructed in 2010, is a premier essential transportation infrastructure asset with an established operating history, robust contractual framework and positive long-term outlook.

Billy Bishop Airport, which is owned and operated by PortsToronto, is the ninth busiest airport in Canada, serving approximately 2.7 million passengers in 2016. Overall, the airport is a major economic engine for the Greater Toronto Area, generating approximately $2.1 billion in total annual economic impact and supporting approximately 6,500 direct and indirect jobs. It is accessible to about 6.6 million residents within a one-hour drive. Billy Bishop Airport’s award-winning customer service is recognized year after year, most recently ranking as one of North America’s best airports in 2017 by Skytrax World Airport Awards. This ranking follows a series of awards earned in 2016, including a similar ranking from Skytrax in 2016 and being named the top airport in North America, and second globally, by the 2016 Airport Quality Awards. The airport was also ranked fourth Best International Airport by Condé Nast Traveler, and named one of the Top Most Beautiful Airport Approaches in the world by Private Fly.

With a focus on sustaining and elevating the passenger experience at the terminal, Nieuport Aviation is committed to building strong relationships with the airport’s stakeholders and to supporting its further development as a vital gateway for commerce and economic growth in the greater Toronto region.

Okanagan Wind

InstarAGF developed and operates two wind power projects in British Columbia’s Okanagan region totaling 30 megawatts of installed renewable energy capacity.

The two projects have been awarded 40-year electricity purchase agreements by BC Hydro, a creditworthy government agency.  Experienced construction and equipment providers were engaged under fixed-price contracts to construct and deliver the projects, which achieved commercial operations in early 2017.  The facilities generate approximately 100,000 megawatt hours of clean electricity annually, enough to power the equivalent of approximately 9,000 homes.

Notably, the projects have entered into Impact Benefit Agreements with local First Nation communities to provide access to job opportunities, annual benefit payments to the community, funds to support scholarships and continuing roles through the operations of the projects. 

Our wind projects establish a footprint for InstarAGF in British Columbia’s attractive renewable energy market, where favourable policies and growing electricity export opportunities to the U.S., among other drivers, suggest positive long-term dynamics and additional growth opportunities.

Steel Reef Infrastructure Corp.

 

Skyservice Investments Inc.

 

Steel Reef

InstarAGF has an investment in Steel Reef Infrastructure Corp., a privately held Canadian midstream energy service company with a diversified portfolio of high quality assets that provide value-added services for the production and processing of oil, natural gas and natural gas liquids.

Steel Reef, which was established in 2012, partners with mid-sized upstream exploration and production (E&P) companies by purchasing or constructing their midstream infrastructure.  Steel Reef’s management team has deep industry experience and a record of constructing, operating and optimizing midstream assets.

Steel Reef’s facilities are located in high quality formations within the Western Canadian Sedimentary Basin, which is one of the world’s largest reserves of oil and natural gas.  These facilities, which are essential energy infrastructure, generate stable cash flow that is primarily underpinned by contracts with well capitalized counterparties.

We believe the basins in which Steel Reef operates have strong economic fundamentals and low producer breakeven points, and that Steel Reef is well positioned for continuing growth.

Skyservice

InstarAGF owns a majority interest in Skyservice Investments Inc. (Skyservice), Canada’s leading provider of business aviation services operating out of facilities in Toronto, Montreal, Calgary and Ottawa. Frequently ranked among the top providers of Fixed-Base-Operations (FBO) services by industry publications such as Professional Pilot Magazine and Aviation International News Magazine, Skyservice also delivers aircraft management and maintenance services.

Skyservice’s business is characterized by high barriers to entry and creditworthy counterparties, and represents a strong foundation for further acquisitions as the FBO market consolidates. InstarAGF will partner with Skyservice’s management team to build the long-term value of the business, with a focus on world-class service, safety and security, and pursuing growth opportunities. We believe our investment in Skyservice enhances InstarAGF’s growing aviation infrastructure platform.

Creative Energy

 

AMPORTS Inc.

 

Creative Energy

InstarAGF manages a North American district energy platform through a 50/50 partnership with Creative Energy, a neighbourhood thermal energy utility company operating one of Canada’s largest district energy networks. The partnership will develop, construct, finance, renew and manage urban energy infrastructure in across Canada and the United States. Creative Energy, which currently operates 14 kilometres of distribution pipes serving more than 210 buildings in British Columbia, has achieved an energy reliability of about 99.9% over the last 50 years of operations.

With the shared experience of our two teams, Creative Energy Developments is well positioned for growth as a leader in energy efficiency and safe, sustainable energy solutions for communities.

AMPORTS Inc.

InstarAGF owns an interest in AMPORTS, Inc. (AMPORTS), a premier, award-winning automotive port logistics and processing company based in Jacksonville, Florida, alongside its Canadian and international co-investors.

AMPORTS is a vital link in the global transportation supply of many of the world’s largest automotive original equipment manufacturers (OEMs), providing customized, seamless logistical port-side services in vehicle processing, including rail loading and unloading, inspection, storage, accessory installations, and customizations, repairs and regulatory homologation services. AMPORTS, which directly owns approximately 50% of its land portfolio, operates from strategically-located facilities along major coastal zones in the United States and Mexico, thereby offering its customers superior access to land transport links and distribution networks in close proximity to major population centres.

With a focus on safety, quality, operational excellence and customer satisfaction, we believe AMPORTS is well positioned to expand and build on its 50-year legacy as an essential component of the North American automotive supply chain.

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InstarAGF Asset Management Inc.
Toronto Dominion Bank Tower
66 Wellington Street West, 31st Floor
Toronto, ON M5K 1E9
416-815-6224