Colonial First State Global Asset Management has more than 13 years experience in infrastructure investment and infrastructure management and is committed to long-term value-based investment. Colonial First State Global Asset Management provides a range of infrastructure offerings to investors, including specific funds, diversified funds and mandates.

Infrastructure Investment, which forms part of Property and Alternative Investments, believes that for an infrastructure fund to perform optimally, it must rely on a dedicated and specialised team of investment and asset management professionals who are directly aligned to the fund's performance.

Our infrastructure-specific investment products include:

  Colonial First State Wholesale Infrastructure Income Fund

  CFS Global Diversified Infrastructure Fund

  First State European Diversified Infrastucture Fund

Also, through diversified investment portfolios, Colonial First State Global Asset Management manages a number of infrastructure investments including interests in:

Utilities	AWG (UK)
	Electricity North West (UK)
	Hazelwood Power Station (Aus)
	Inexus Group Limited (UK)
	Loy Yang A CPI bonds (Aus)
Airports	Adelaide Airport (Aus)
	BAA Junior Debt (UK)
	Bankstown and Camden Airports (Aus)
	Brisbane Airport (Aus)
	Perth Airport (Aus)
	Sydney Airport (Aus)
Road, rail and parking	FreightLink (Aus)
	International Parking Group (Aus)
	Metro Transport Group (Aus)
	Statewide Roads (Aus)
Diversified Investments	Asian Infrastructure Fund (Asia)
	Asian Infrastructure Fund II (Asia)
Health	Newham Hospital (UK)

Fund descriptions February 2008

Colonial First State Wholesale Infrastructure Income Fund
The Colonial First State Wholesale Infrastructure Income Fund (WIIF) holds a diversified portfolio of income-style infrastructure assets with attractive sub sector and geographic diversification.

WIIF is managed by Colonial First State Property Limited.

Exposure to WIIF’s portfolio of relatively high yielding assets complements the overall Fund diversification strategy and is consistent with the Fund’s investment objectives.

CFS Global Diversified Infrastructure Fund
CFS Global Diversified Infrastructure Fund is based on the principle of providing the institutional investor market with a long-term exposure to an attractive portfolio of diversified infrastructure investments.

The Fund provides an opportunity for institutional investors to apply for Units in an unlisted wholesale unit trust with the following characteristics:
• unlisted open-ended infrastructure funding diversification across global regions and infrastructure sectors
• an existing portfolio of infrastructure assets providing an exposure to the transport and
• utilities sectors, and
• competitive risk-adjusted investment performance, compared to traditional asset classes.

First State European Diversified Infrastructure Fund
First State European Diversified Infrastructure Fund FCP-SIF is based on the principle of providing the institutional investor market with a long-term exposure to a portfolio of predominantly European and UK based unlisted infrastructure investments that have the ability to generate attractive risk adjusted returns.

The Fund’s approach is based on an investment  management  model which aligns the interests of the Management Company with those of the Investors.

The Fund’s focus is on core economic infrastructure assets based in Europe and the UK that have
the potential to provide long-term, attractive, risk‑adjusted returns.

Asset descriptions February 2008

Country Pipelines

Acquisition date: December 2004

Funds which hold an interest: CFS Global Diversified Infrastructure Fund

Investment description:
The Country Pipelines project was formed to build, own and operate a natural gas pipeline extending from Dubbo to Tamworth, in the Central Ranges district of New South Wales, and a gas reticulation network within the Tamworth township.

The pipeline has been operational since August 2006 and is currently ramping up its gas deliveries to industrial, commercial and retail customers.

The pipeline is regulated under a long-term Access Arrangement expiring in 2019 which allows the
pipeline to generate an inflation index-linked regulated return.

Hazelwood Power Station

Acquisition date: September 1996

Funds which hold an interest: CFS Global Diversified Infrastructure Fund

Investment description:
Hazelwood Power is an unincorporated partnership that was formed in 1996 to acquire the electricity generation operations of Hazelwood Power Station.

Hazelwood Power is the second largest power station in Victoria and has eight generation units, with a total installed capacity of over 1,600 megawatts.

The business is located in the La Trobe Valley, on a 3,354 hectare site that houses the power station and a brown coal mine.

The majority investor is International Power plc who is also the operator. The Colonial First State group, through its asset management business, was a foundation investor.

Inexus Group Limited

Initial investment made: September 2005

Funds which hold an interest: Colonial First State Wholesale Infrastructure Income Fund

Investment description:
Inexus is the largest independent utility and infrastructure provider in the UK with more than
680,000 gas, electricity and water connections and contracts to date.

Inexus is involved in the design, construction, ownership, operation and maintenance of utility networks and associated site infrastructure, serving new developments throughout the UK mainland.
Inexus broadly divides its activities between the regulated ownership of utility network assets, and the unregulated provision of utility infrastructure and asset management services. The company operates within a stable and transparent regulatory regime.

Somerton Pipeline

Acquisition date: August 2004

Funds which hold an interest: Colonial First State Wholesale Infrastructure Income Fund

Investment description:
The Fund has a 50% interest in CM Somerton Pty Limited, which in turn has a 25% interest in the Somerton Pipeline Joint Venture.

Somerton Pipeline transports aviation fuel 25 kilometres from the Altona Refinery to the Somerton Depot before being sent to Melbourne’s Tullamarine Airport.

The pipeline network provides over 85% of aviation fuel to Tullamarine Airport.

Adelaide Airport

Acquisition date: July 1998

Funds which hold an interest: CFS Global Diversified Infrastructure Fund

Investment description:
Adelaide Airport Limited (AAL) is the principal\ international and domestic gateway to South Australia, and is located approximately 6km west of Adelaide CBD. It is Australia’s fifth largest airport by passenger volume, handling more than six million passengers annually. Operations include provision of aeronautical and terminal infrastructure, retail business, car parking and property management.

Colonial First State was a foundation investor when the airport was privatised in 1998. AAL also operates Parafield Airport, Adelaide’s secondary airport used primarily by general aviation.

BAA junior debt

Acquisition date: December 2007

Fund which holds an interest: Colonial First State Wholesale Infrastructure Income Fund

Investment description:
BAA is the world’s largest airport operator, and one of the world’s premier infrastructure assets.
BAA’s flagship assets are its three designated UK airports (with regulated price caps), namely Heathrow, Stansted and Gatwick. Heathrow is the world’s busiest international airport, and third busiest in total passenger numbers.

BAA also owns another four non-price regulated airports in the UK, namely Aberdeen, Edinburgh and Glasgow in Scotland, and Southampton. In addition to its UK airports, BAA has management contracts and ownership interests in airports in selected airports.

The investment comprises subordinated debt securities (junior debt), ranking second behind senior debt payments, but before equity distributions, toggle facility and PIK (payment-in-kind) notes.

Bankstown and Camden Airports

Initial investment made: May 2006

Funds which hold an interest: Colonial First State Wholesale Infrastructure Income Fund

Investment description:
Bankstown Airport is one of Australia’s major general aviation airports, located approximately 22km south-west of Sydney CBD. The airport occupies an area of more than 300 hectares and incorporates a variety of aviation and non-aviation activities, including commercial and industrial tenants.

Camden Airport is another general aviation airport, located approximately 60 kilometres south-west of Sydney CBD.

Brisbane Airport

Acquisition date: July 1997
Funds which hold an interest: CFS Global
Diversified Infrastructure Fund

Investment description:
Brisbane Airport is the principal international and domestic gateway to Queensland, and is located 13 kilometres east of Brisbane CBD. It is Australia’s third largest airport by passenger volume, handling more than 17 million passengers annually.

Brisbane Airport has Australia’s largest on-airport mixed-use commercial development zone and is one of Australia’s largest airports in terms of land area.

Operations include provision of aeronautical and terminal infrastructure, retail business, car parking and property management. Colonial First State was a foundation investor when the airport was privatised in 1997.

Perth Airport

Acquisition date: October 2003

Fund which holds an interest: N/A. Investment is managed on behalf of a mandate client

Investment description:
Perth Airport is the principal international and domestic gateway to Western Australia, located approximately 12km east of Perth CBD. It is Australia’s fourth largest airport by passenger volume, handling more than 8 million passengers annually. Perth Airport has a sizeable on-airport development land bank.

Operations include provision of aeronautical and terminal infrastructure, retail business, car parking and property management.

Sydney Airport

Acquisition date: June 2002

Funds which hold an interest: CFS Global Diversified Infrastructure Fund

Investment description:
The interest in Sydney Airport is held through a sole purpose vehicle Southern Cross Australian Airports Trust (SCAAT).

The Trust does not have a mandate to list or wind up. SCAAT is managed by Macquarie Specialised Asset Management Limited.

Sydney Airport is the largest airport in Australia by passenger numbers and the prime international gateway to Australia. It handled 20 million domestic passengers and 10 million international passengers in 2006.

Operations include provision of landing and terminal infrastructure, retail business, car parking and property management.

The Airport is located 8km south of the Sydney CBD and has rail and road infrastructure links to the city.

The Airport was corporatised and transferred to Sydney Airport Corporation Limited (SACL) in July 1998 under a 99 year lease. SACL was the last major city airport to be formally privatised, in June 2002.

The Colonial First State group, through its asset management business, was a foundation investor at privatisation through its holding in MAG.

FreightLink

FreightLink (Equity)

Acquisition date: May 2001

Funds which hold an interest: CFS Global Diversified Infrastructure Fund

FreightLink (Mezzanine Debt)

Acquisition date: May 2001

Funds which hold an interest: CFS Global Diversified Infrastructure Fund

Investment description:
The FreightLink business includes both train and track operations. The network comprises newly constructed track between Alice Springs and Darwin, in Australia’s Northern Territory, and control of the existing track between Tarcoola, South Australia, and Alice Springs.

The railway is used to transport domestic freight, primarily between Adelaide and Darwin, and international freight to the Port of Darwin. Since its inception, the railway has captured a significant share of general freight previously being transported by road, and is growing its bulk haulage services focused on emerging mining opportunities. Colonial First State was a foundation investor.

International Parking Group

Initial investment made: February 2003

Funds which hold an interest: Colonial First State Wholesale Infrastructure Income Fund

Investment description:
International Parking Group specialises in the ownership and operation of hospital car parks with operations at nine hospital campuses, five in Sydney and four in Brisbane. Across the nine campuses
International Parking Group holds licences or leases to operate approximately 9,600 bays under management.

Hospital car parks generally have higher barriers to entry and less competition than commercial car parks. Demand is also relatively predictable and inelastic to tariff increases.

Metro Transport Group

Acquisition date: June 1995

Funds which hold an interest: CFS Global Diversified Infrastructure Fund

Investment description:
Metro Transport Group owns and operates Sydney Light Rail and Monorail under long term leases with the NSW Government.

Sydney Light Rail and Monorail provide an alternative and efficient mode of transport for Sydney commuters and tourists.

The Monorail forms a loop around the city covering the CBD, Haymarket and Darling Harbour. Sydney
Light Rail system runs from Central Station to Inner Western Sydney.
The Colonial First State group, through its asset management business, was a foundation investor.

Statewide Roads

Acquisition date: September 1994

Funds which hold an interest: n/a. Investment is managed on behalf of a mandate client.

Investment dscription:
Statewide Roads operates the M4 Motorway in Sydney, under a long-term lease with the NSW Government.  The concession expires in February 2010.

The M4 Motorway connects Sydney’s inner-west at Strathfield, through Parramatta, to Sydney outer-west at Penrith. It also intersects the Westlink M7 Motorway at Eastern Creek. It is one of the busiest toll roads in Sydney and has three lanes in each direction for the majority of its length.

The motorway has a total distance of 40 kilometres, although Statewide Roads is only responsible for maintaining two sections of the road, totalling 12 kilometres.

Colonial First State group, through its asset management business, was a foundation investor.

Asian Infrastructure Fund

Acquisition date: December 1996

Funds which hold an interest: CFS Global Diversified Infrastructure Fund

Investment description:
Asian Infrastructure Fund is a $US361 million closed-end equity fund that invests in high-growth private infrastructure companies throughout Asia.

The fund’s investments are in unlisted and listed companies in the transportation, power and telecommunications sectors.

The investment is advised by AIF Capital Limited, Hong Kong.

The Colonial First State group, through its asset management business, was a foundation investor.

Asian Infrastructure Fund II

Acquisition date: December 2000

Funds which hold an interest: CFS Global Diversified Infrastructure Fund

Investment description:
Asian Infrastructure Fund II is a closed-end private equity fund launched in 2001.

The strategy is to invest in companies in Asia with strong market positions and predictable cash flows.

The investments are in both unlisted and listed companies in various industries, including supply-chain management, steel, power, financial services, and chemical production.

The three largest investments are all listed companies, accounting for over 80% of the current portfolio:
• Olam International Limited (listed on the Singapore Exchange)
• SeAH Besteel Corporation (listed on the Korean Stock Exchange), and
• Yes Bank Limited (listed on the National Stock Exchange of India and the Bombay Stock
• Exchange).

The investment is advised by AIF Capital Limited, Hong Kong. The Colonial First State group, through its asset management business, was a foundation investor.

Newham Hospital

Initial investment made: July 2006

Funds which hold an interest: Colonial First State Wholesale Infrastructure Income Fund

Investment description:
The Newham Hospital investment involves a Private Finance Initiative (PFI) with the UK government for the design and construction of two major extensions to Newham General Hospital in East London and the provision of maintenance services to the hospital.

The provision of these services is outsourced to a leading hospital support services provider through an operating contract. The PFI structure involves the project receiving availability charges from the government, and paying sub-contractors who take on the operational obligations and risks of the project.