John Laing renewable asset buyers looking for partners

The Hornsdale Wind Farm in South Australia.

Parties shortlisted to buy John Laing’s Australian renewable assets are believed to be searching for equity partners to join forces for an acquisition.

Groups in the final mix have apparently made approaches around the market to determine if others want to tip in funds to acquire the wind farms.

One possible scenario is a break-up, where assets are sold off individually in the Macquarie Capital-advised process.

The infrastructure investors shortlisted for the John Laing wind farms are believed to be First Sentier Investors, advised by JPMorgan, ICG and Federation Asset Management, which already owns the Kiata Wind Farm in Victoria with John Laing through its Windlab business.

Some believe that Neoen, advised by PwC is unlikely to remain a contender, despite earlier being in the mix.

The bidders are now vying for a smaller portfolio after John Laing opted to exclude solar assets in its Australian business, such as the Sunraysia Solar Farm and the Finley solar project, both in NSW.

It means that any acquirer would now need to write a cheque for at least $250m for the wind farm portfolio — about half the earlier estimated amount when the solar projects were also on offer.

The competition is now in the second stage.

Assets on offer are the Cherry Tree and Kiata wind farms in Victoria, Hornsdale wind farm in South Australia and Granville Wind Farm in Tasmania.

First State Super and Palisade, which already has pre-emptive rights on one of the assets, were earlier considered to be the front runners to buy the asset, but have fallen away.

It comes as the contest for Engie’s Willogoleche wind farm in South Australia remains in the final stages.

Initially, Engie was offering not only the chance to buy the wind farm, but for a party to co-invest on future projects.

However, the thinking now is that the sales process may have taken a different path where now only the wind farm is on offer.

The Engie sales process for its Willogoleche Wind Farm in South Australia has shortlisted bidders Palisade Investment Partners, advised by Macquarie Capital, along with the Dutch Infrastructure Fund and ICG.

Working for Engie is Azure Capital and French bank Natixis.

On offer was a stake in International Power (Australia) Holdings, which is a joint venture made up of 72 per cent shareholder Engie and Mitsui, and owns Willogoleche Wind Farm.

The earlier opportunity was for a buyer to not only acquire that asset but also invest in future projects, where it would secure between 50 per cent and 80 per cent of the platform.

Engie was earlier hoping to net about $500m from the sale.