John Laing Australia sale bids to open next quarter

18 February 2020 - 12:00 am UTC

Further details have emerged of John Laing’s sale of its Australian renewables assets.

Financial advisor Macquarie Capital will take indicative bids for John Laing’s 522 MW Australian renewables portfolio in the second quarter of this year.

Binding bids will come due in the third quarter, according to a teaser for the sale codenamed Project Goliath.

Further details emerge of John Laing Australia sale

John Laing started preparations for the sale late last year and subsequently chose Macquarie to advise on it.

China’s State Development and Investment Corp. is considering bidding in the auction.

John Laing plans to sell 100% of its interest in a portfolio of six wind assets and two solar assets as part of its “ongoing investment, value realisation and capital recycling strategy,” the document said.

All eight of the assets will be operational when the sales process starts, it added.

The teaser also said that John Laing is offering a geographically diverse portfolio, with assets in New South Wales, South Australia, Victoria and Tasmania, and that the weighted average power purchase agreement agreement life of the assets is 14 years.

It said that John Laing’s partners in the portfolio include Neoen, Palisade Investment Partners and Windlab.

John Laing acquired a number of Australian renewables projects in quick succession between 2017 and the end of 2018. Some have since struggled with grid connections, EPC contractors and other technical issues. In August 2019, it announced that it had taken a GBP 66m (USD 86m) hit to its Australian renewables portfolio and that it would place a hold on investing in further projects.

The losses were chiefly attributed to three projects, which include the 174 MWp Finley solar project in Victoria, which it bought in November 2018, and 90.1% of the 225 MW Sunraysia Solar project. Both are located in the Riverina district of New South Wales, where getting connected to the grid is expensive and challenging. 

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