Rest takes full control of Collgar wind farm
George Zielinski said taking full ownership was a ‘great opportunity to drive further value from the asset’.
Industry superannuation fund Rest has taken full control of Western Australia’s biggest renewable energy plant, the Collgar wind farm, after buying out partner UBS Asset Management.
Rest, the Retail Employees Superannuation Trust, has bought the 60 per cent of the plant it did not own for an undisclosed price from UBS AM’s real estate and private markets infrastructure business.
Super Investment Management chief investment officer George Zielinski said taking full ownership was a “great opportunity to drive further value from the asset” and strengthen the $50 billion Rest’s infrastructure portfolio.
Rest and UBS partnered on the development of the farm when construction began in 2010. and the deal will make it one of the largest renewable projects to be fully owned by an Australian super fund.
Industry sources estimate the UBS stake would be worth less than $400 million.
A half-share of the Macarthur wind farm in Victoria, which at 420MW is twice the size of Collgar, is also on the market. Malaysia’s Malakoff Corp is reported to be seeking $500m for it.
Collgar is at Merredin, 250km east of Perth and at 206MW is Western Australia’s biggest renewable energy producer. The 18,000ha wind farm generates between 40 per cent and 50 per cent of WA’s renewable energy.
Mr Zielinski said the asset had generated strong returns.
“The project has and is expected to continue to generate sustainable cash flows,’’ he said.
“We are confident it will help grow members’ retirement saving. Infrastructure currently makes up about 6 per cent of the asset allocation of Rest’s core strategy.”