Sydney-based Macquarie Group and Abu Dhabi Commercial Bank have launched a fund that they expect will raise up to $1 billion for investment in infrastructure opportunities in the Gulf Cooperation Council and the broader Middle East and North Africa region.

An initial founding investment of $500 million has been made by Al Hail Holding, a United Arab Emirates-based investor and developer. The ADCB Macquarie Infrastructure Fund announced it is seeking other regional investors, according to a joint statement.

The fund has raised $630 million in capital commitments to date and is currently raising capital from both domestic and international institutional investors to make investments in infrastructure and infrastructure-like assets, primarily in GCC countries.

It said it may also make investments in the broader Middle East and North Africa region. Its current investor base comprises institutions in Qatar, Kuwait and Korea, in addition to sponsor commitments from ADCB and Macquarie.

“A strong pipeline of investment opportunities has already been identified for AMIF on the back of Macquarie and ADCB’s unique deal-sourcing capabilities and the considerable demand for private infrastructure projects in the GCC countries,” said Eissa Al Suwaidi, chairman of ADCB, in the statement.

He said AMIF intends to provide equity capital for investments in traditional infrastructure, such as: roads, water and wastewater utilities, ports, airports and distribution, gas distribution and social infrastructure.

Macquarie formed a joint venture with ADCB in July 2005, which focuses on the infrastructure sector. ADCB Macquarie Corporate Finance provides mergers and acquisition and project finance advisory services to clients in the United Arab Emirates.

Meanwhile, weaker than expected traffic volume forecasts, mostly from the US, as well as economic conditions forced Macquarie Infrastructure, an externally managed vehicle, to cut the value of its infrastructure portfolio by 35 per cent, according to The Australian.

A Macquarie spokesman told the paper the cut is a result of  "changes to asset discount rates reflecting the market environment, lower forecast traffic volumes driven by the recessionary environment in the northern hemisphere, higher assumed financing costs across the portfolio, and the impact of macroeconomic factors."

Investors immediately pulled out, the paper said, pushing the share price down 7.5 per cent. Macquarie Group holds a 16 per cent stake in Macquarie Infrastructure Group.

According to the Australian daily, the MIG announcement follows recent commentary by well known short seller James Chanos, who maintains a short position on Macquarie Group, that Macquarie has overpaid for toll roads and airports.

"What we've seen is that not only has the credit environment tightened but actually things like toll roads and airports are seeing less traffic and, also, the projections haven't come.

"I think Macquarie's auditors are going to have a hard time come March of revaluing the assets, which is what they were doing every year, so they could pay dividends," Mr Chanos was quoted as saying.

Macquarie Infrastructure Group is a Macquarie Group branded externally managed vehicle comprising two Australian trusts (Macquarie Infrastructure Trust I and Macquarie Infrastructure Trust II) and a Bermudan mutual fund company (Macquarie Infrastructure Group International Limited).

The securities of the trusts and company are listed on the ASX and must trade and otherwise be dealt with together.