Infrastructure Capital Group, a leading Australian infrastructure manager, with c.A$2.5bn of equity under management, is pleased to announce its Australian Renewables Income Fund (“ARIF”) has agreed to acquire a 75% interest in the Australian Renewable Energy Trust (“ARET”).
ARET is a renewables platform and partnership being established by ARIF and ENGIE Australia & New Zealand (“ENGIE ANZ”), a joint venture between global energy giant ENGIE and Japanese trading house Mitsui.
Upon transaction close, ARET will be seeded with the operational 119MW Willogoleche Wind Farm in South Australia.
Commissioned in late 2019, Willogoleche benefits from being located near major energy loads and having a robust grid connection. It also has well contracted cash flows, including a power purchase agreement with Simply Energy that runs to 2030.
The investment also includes exclusive rights to a pipeline of more than 1,300MW of solar and wind development projects throughout Australia.
Tom Laidlaw, Managing Director of ICG, commented: “We are delighted to be investing in this high-quality renewables platform alongside two such well-regarded, likeminded partners as ENGIE and Mitsui.
“This allows us to combine our collective expertise to develop innovative renewables assets that not only meet the increasing demand from our institutional investors but importantly accelerate our ability to build a portfolio that provides the Australian market with renewable energy at competitive pricing.”
ENGIE and Mitsui have successfully collaborated with other investors on similar joint ventures and renewables platforms in other regions, including in Europe, North America and Asia.
The transaction does not require regulatory approvals and financial close is expected by the end of October 2020.