AMP Capital wins stake in Macarthur wind farm

30 October 2019 - 12:00 am UTC

AMP Capital is buying Malakoff Corp.’s half stake in the 420MW Macarthur Wind Farm in Victoria.

AMP Capital will pay Malaysia’s Malakoff Corp about AUD 880m (USD 603m) for a half share in the 420MW Macarthur Wind Farm in Victoria, Australia’s largest operating wind generator.

The fund manager announced today its Community Infrastructure Fund (CommIF) and its Core Infrastructure Fund (CIF) had made the acquisition. This is CommIF and CIF’s first direct investment in a renewable energy asset. The deal is expected to reach financial close at the end of 1Q 2020.

The equity paid by the funds is AUD 356.85m, according to a Malakoff stock market release. It said it had originally paid AUD 130.33m in June 2013 for the holding.

Malakoff will use part of the proceeds to pay off its original acquisition loan, now at about AUD 140m.

The new owners of the asset will now refinance a AUD 502m, 7-year project debt facility raised last year, a source familiar said.

Other bidders for the 50% share of the power plant included Palisade Investment Partners and Malakoff’s co-owner of the wind farm, Morrison & Co.

A spokesperson for AMP Capital would not reveal the exact percentage of each funds’ investment, but said the vast majority is from CommIF. CommIF is mainly focused on social infrastructure in Australia, while CIF includes stakes in Melbourne Airport, train lessor Angel Trains in the UK and gas distributor Powerco in New Zealand.

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