AMP Capital on track to acquire a stack interest in the Macarthur Wind Farm.

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.

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Optus Stadium is a new state-of-the-art, multi-purpose stadium that accommodates a range of entertainment and sporting events, including cricket, rugby union, rugby league, AFL, soccer and concerts. The stadium was developed as a Design, Build, Finance and Maintain Project with the Western Australian Government, under a 25-year concession.

Since it was opened in January 2018, the 60,000-seat stadium has hosted more than two million people.  The stadium can be adapted to a ‘rectangular field’ setup with a 12-hour turnaround and has two 340m² video screens, which are among the largest in Australia.

Optus Stadium is one of Perth’s newest attractions and within months of opening received a WA Tourism Award.  The project’s focus on social and environmental aspects resulted in greater public transport access to the stadium, with the development of a dedicated six-platform train station at its doorstep and a 117-railcar stowage in its vicinity.  Multiple walking and cycling paths connect Optus Stadium to the existing Burswood Peninsula path network and Stadium Park where there are more than 600 bike racks located around the park.

CommIF Fund Manager, Charles Savage, said: “CommIF is delighted to have secured an interest in Optus Stadium for our clients.  We are proud to invest in a social infrastructure project that supports sporting and community events, and brings strong financial benefits to its local economy.

“With the interest acquired in Westadium, CommIF’s portfolio increases to 14 social infrastructure assets. CommIF holds a strong track record in the market and is recognised as a leading investor and manager of social infrastructure assets.  Our clients value the secure and predictable revenue streams that social infrastructure projects offer,” Mr Savage said.

The transaction reached financial close in March 2019. AMP Capital was advised by Clayton Utz, Deloitte, Aon and MBM.

CommIF invests in high-yield, brownfield, social infrastructure assets in Australia and New Zealand. The fund’s focus is on sectors such as education, health, corrections, community housing, water and recreational facilities.

The acquisition in Westadium increases the total CommIF assets under management to A$3.7 billion, with over A$830 million in equity invested.

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The deal will take AMP Capital’s share of the VDP to 16.5 per cent, following the acquisition of a 5.2 per cent stake in September 2016 and 4.55 per cent stake in December 2017.

VDP, delivered as a public private partnership (PPP), is the largest desalination plant in the Southern Hemisphere. It is a rainfall-independent source of drinking water and capable of supplying up to 150 gigalitres a year, which is approximately one third of Melbourne’s annual water consumption.

The plant uses state-of-the art technology and processes, including reverse osmosis to desalinate water in a highly energy-efficient way. The facility’s living green roof is covered with indigenous vegetation and is located in a site that features eight kilometres of walking, cycling and horse-riding paths that link with existing trails in the area for community use

Charles Savage, CommIF Fund Manager, said: “The Victorian Desalination Plant is known for its world-class design and sustainable practices. The acquisition increases the fund’s exposure to the water sector and will sit alongside existing water assets such as Riverland Water and AquaTower.

“CommIF holds a strong track record in the community infrastructure market as a leading investor and manager of PPP assets. We look forward to continuing our momentum by working with state governments and key stakeholders to deliver value-for-money projects that benefit the community.”

CommIF invests in high-yield, brownfield, social infrastructure PPP 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 fund has 13 assets with net asset value of more than A$760 million.

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Riverland Water

AMP Capital has acquired the remaining 50 per cent equity stake in Riverland Water Holdings Pty Ltd (Riverland Water) from TRILITY, on behalf of investors in its Community Infrastructure Fund (CommIF). The deal increases CommIF’s interest in Riverland Water to 100 per cent.

Riverland Water, located in South Australia, consists of ten water treatment plants that use sedimentation and filtration technology. The plants deliver drinking water to approximately 150,000 people across more than 90 communities, including supply to the Adelaide Hills, Barossa Valley, Mid North and River Murray towns.

AMP Capital is one of the founding investors in Riverland Water, which began its operations in 1999 under a Build-Own-Operate-Transfer model in partnership with the South Australian Water Corporation.

AMP Capital CommIF Fund Manager Charles Savage said: “AMP Capital is a proud long-term investor and we are extremely pleased to own 100 per cent of the equity interest in Riverland Water. It’s a high-quality asset that supports CommIF’s objective to provide long-term stable returns while generating real benefits for society.”

“It’s a high-quality asset that supports CommIF’s objective to provide long-term stable returns while generating real benefits for society.”

“This is the second transaction for CommIF in 2018, following the acquisition of a 21 per cent stake in the Victorian Comprehensive Cancer Centre in January. We remain focused on expanding our presence in the social infrastructure market in Australia and New Zealand during 2018.”

Riverland Water outsources its day-to-day operation to TRILITY, who are continuing in their role as operator following the sale of their 50 per cent stake. TRILITY is a water utility service provider whose capabilities cover the full life cycle of water through water, wastewater treatment, reuse and desalination and bio-solid projects across Australia and New Zealand.

CommIF invests in high-yield, brownfield, social infrastructure PPP assets in Australia and New Zealand in sectors such as education, health, justice, defence, community housing, recreational facilities and transport.  The fund owns 13 assets with an enterprise value of more than A$8 billion (on a 100 per cent ownership basis).

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