Trio in final running for New Energy Solar’s Australian assets
Three parties are understood to have been short-listed in the competition to buy Australian assets owned by New Energy Solar.
It is believed Palisade Investment Partners, Infrastructure Capital Group and a third offshore party are through to the final stage of the competition.
The market value of New Energy Solar is currently at $279m and the assets have underperformed on the listed market, prompting a sale where a private investor would ascribe to them more value.
Palisade and ICG have been strong contenders in recent renewable energy portfolio auctions, including the sale process for John Laing’s Australian wind farms that were sold to First Sentier for $285m.
ICG purchased Engie’s Willogoleche Wind Farm in South Australia and secured other development opportunities from Engie for $400m.
The listed New Energy Solar announced to the market last year that, following a strategic review, it had opted to sell its Australian solar farms.
Final bids are expected to be due within six weeks for the portfolio that is up for sale through the Royal Bank of Canada.
As well as its Australian portfolio, New Energy Solar owns 14 solar projects in the US.
For sale are the 110 megawatt Beryl plant and 55MW Manildra facilities in NSW.
New Energy Solar’s Australian solar farms have been described as being in a mature operational state compared with its larger US portfolio, which totals 606MW of capacity.
It listed at $1.50 in 2017. Shares on Wednesday closed at 78c.
The process is drawing to a conclusion as Elliott Management Corporation and Denham Capital prepared to place their Australian renewable energy portfolios on the market amid a period of strong demand from infrastructure buyers searching for returns in a low interest rate environment.
Collectively, the portfolios are expected to be worth well over $1bn.