The Dutch Infrastructure Fund is turning its attention to Engie’s Willogoleche Wind Farm in South Australia, according to sources, with the conclusion of a sales process for the renewable energy asset said to be only days away.
DIF has been keen on the John Laing renewable energy portfolio in Australia, but the understanding is that its interest may have switched to the Engie process, with it closely examining that business in recent weeks.
Working for Engie is Azure Capital and French bank Natixis.
On offer is a stake in International Power (Australia) Holdings, which is a joint venture made up of 72 per cent shareholder Engie and Mitsui, and it owns Willogoleche Wind Farm.
The opportunity for a buyer is not only the acquisition of that asset but also investing in future projects, acquiring between 50 per cent and 80 per cent of the platform.
Engie was earlier hoping to secure about $500m from the sale.
A winning bidder could be selected in the next fortnight.
DIF has renewable energy assets in the US and in Australia. It owns an interest in the Avertas Energy waste recycling project south of Perth.
Despite current travel restrictions linked to the coronavirus, Australian renewable energy assets remain in high demand, as infrastructure investors hope to capitalise on the growing shift away from traditional power sources such as coal.
John Laing’s Australian renewable energy portfolio is currently up for sale through Macquarie Capital, while at least three parties have recently been interested in buying the Australian listed renewable energy provider Infigen.
Infigen is now set to be bought by global industry player Iberdola for $864m, but earlier, the Australian infrastructure investor Infrastructure Capital Group was planning a bid, while UAC Energy has also been vying for the company.
ICG is also working with adviser Gresham for a tilt at the John Laing portfolio, worth about $750m, while Palisade Investment Partners is bidding with First State Super, taking advice from Royal Bank of Canada and Grant Samuel.
While about 80 parties were said to have expressed interest, the field is expected to narrow due to the challenges surrounding some of the assets in what is a disparate portfolio with no local management team. Some assets have short-term power contracts or only a minority ownership interest.
With respect to the Engie process, parties that were earlier expected to line up for the Willogoleche Wind Farm included AMP Capital, Jemena, First Sentier Investors and Palisade Investment Partners.
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