Not for release or distribution in the US
AMP Capital has agreed to acquire a 50 per cent interest in Macarthur Wind Farm, the largest wind farm in the southern hemisphere, from Malakoff. The acquisition is on behalf of investors in the AMP Capital Community Infrastructure Fund (CommIF) and the AMP Capital Core Infrastructure Fund (CIF).
Macarthur Wind Farm, located in south western Victoria, comprises 140 wind turbines capable of generating 420 MW of energy – enough to power the equivalent of 181,000 Australian homes every year. The site spans approximately 5,500 hectares of agricultural land outside the Macarthur township.
Energy generated from the wind farm, which started operating in 2013, is fully contracted to AGL under a fixed price contract until 2038. AGL operates Australia’s largest electricity generation portfolio and is one of the largest ASX-listed investors in renewable energy.
AMP Capital Community Infrastructure Fund Manager Charles Savage said: “We’re extremely pleased to have secured this asset for our investors. Macarthur Wind Farm is a unique and high-quality asset that meets CommIF’s objective to produce long-term, stable returns while delivering a positive social impact now and into the future.
The transaction marks CommIF’s first investment in the renewable energy sector. It has an attractive risk profile that provides fixed revenues that are not exposed to price or volume risk. We remain excited by the pipeline of further opportunities in social and community infrastructure projects across Australia and New Zealand in 2020.
CommIF invests in high-yield, brownfield, social infrastructure assets in Australia and New Zealand in sectors such as education, health, corrections, community housing, water and recreational facilities. The fund provides investors with the opportunity for stable, long-term returns. The acquisition will increase the number of assets held by CommIF to 15, with a total enterprise value of circa A$4.6 billion.
AMP Capital CIF Fund Manager John Julian said: “Macarthur Wind Farm is a terrific addition to the CIF portfolio. The fund aims to provide retail investors with both sustainable income and capital growth over the long term – the acquisition is well-aligned to this objective.”
CIF provides retail investors access to both listed and unlisted infrastructure assets, typically only available to large institutional investors. The fund provides diversified exposure to multiple sectors, OECD regions and asset types including airports, transport infrastructure, water, gas, and electricity.
The transaction is valued at approximately A$880 million. Financial close of the deal is expected to complete by the end of the first quarter of 2020. AMP Capital was advised by MUFG Bank, PwC, King & Wood Mallesons, Aurecon, and Frontier.
While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.