JP Morgan Asset Management, together with Australian Challenger Infrastructure Fund (CIF), has bought Southern Water from owners Royal Bank of Scotland for ₤4.2 billion.

J P Morgan will take a 32% stake for £360 milion in Southern Water, while CIF will pay £300 million in return for a 27% interest.  Other shareholders in the consortium include Access Capital, taking a combined 18% stake for £201 million for seven Australasian superannuation funds and UBS, with 18% for £200 million.

CIF’s announcement regarding the purchase states that Southern Water Regulated Capital Value is forecast to be 33.2 billion by March 2008, - the fastest growing of all the UK WaSC’s at 31% over 2005-2010.