Santander infrastructure fund cancelled

Santander has canceled the Infrastructure Fund II. The idea behind the infrastructure fund was very similar to the disastrous real estate funds: to make a benefit from participating in expanding roads, ports, water systems, etc...

Fundraising for Santander Infrastructure Fund II was being wound down by its placement agent, Atlantic Pacific Capital, after reaching just less than half of its 1.5 billion euro target, people familiar with the fundraising have said. Although infrastructure assets often benefit from government support that makes them attractive, funds that choose assets exposed to market risk - such as toll roads that rely on car traffic - are viewed more sceptically in an economic downturn.

Santander together with Spanish infrastructure group Abertis, bought stakes in two Chilean toll roads from Spanish builder ACS in December 2008 in a 728 million euro deal. Also, Santander Infrastructure Fund II bought Chilean water company Aguas Nuevas from the Solari Group.