Infrastructure funds and Chinese company bid for Aussie wind farm

08 May 2019 - 12:00 am UTC

Palisade, HRL Morrison and China Three Gorges have all lodged indicative bids for Macarthur Wind Farm, according to sources.

The sale of Malakoff’s 50% stake in Macarthur Wind Farm in Victoria has drawn interest from Australian infrastructure funds and China Three Gorges, the sources said.

Financial adviser Rothschild received indicative bids from at least three parties on Monday, the sources said. The long-awaited sale kicked off in March, as reported by SparkSpread, a sister publication to Inframation.

HRL Morrison owns the other half of the wind farm, which has standalone debt financing and a separate Power Purchase Agreement from AGL Energy, and is potentially interested in acquiring the other half, said one of the sources. 

Palisade Investment Partners has also entered the two-stage auction, said a source familiar with the Sydney-based fund manager. It owns two of the stages of the Hallett Wind Farm which has a similar offtake with AGL to the one used at Macarthur. 

China Three Gorges and Nebras Power, a Qatari utility, have also shown their hand in the first stage of the sale process, said two banking sources. 

New Zealand’s Meridian Energy commissioned Macarthur Wind Farm in 2013 and sold half of it to Malakoff for AUD 130m. 

AMP Capital; Challenger Life; and Korea East-West Power Co. (EWP) were underbidders.

In 2015, Morrison bought the second half of Macarthur from AGL Energy for AUD 532m.

The project also carries AUD 502m of seven-year debt, which was refinanced last June.

A Rothschild banker did not return phone calls and email requests for comment.

 

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