The acquisition is on behalf of investors in the AMP Capital Community Infrastructure Fund and the AMP Capital Core Infrastructure Fund.
Macarthur Wind Farm, located in south western Victoria, comprises 140 wind turbines capable of generating 420 megawatts 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.
“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,” AMP Capital Community Infrastructure Fund Manager Charles Savage said.
“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 acquisition will increase the number of assets held by CommIF to 15, with a total enterprise value of circa $4.6 billion.
The transaction is valued at approximately $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.