Infrastructure Capital Group (ICG) is pleased to announce that Energy Infrastructure Trust (EIT) has acquired a 39.9% interest in Hallett 4 Wind Farm (Hallett 4) – a 63 turbine, 132.3 MW wind farm located in South Australia.
The transaction was completed after a sale process undertaken by Marubeni Corporation. Following the acquisition, Hallett 4 will be owned by EIT (39.9%), Osaka Gas Co. Ltd (39.9%) and APA Group (20.2%).
It is the third AGL Energy backed wind farm that EIT has in its portfolio complementing Wattle Point and Hallett Hill No 2 Wind Farms that were acquired in 2007 and 2008, respectively. Similar to Wattle Point and Hallett Hill No 2 Wind Farm, AGL is responsible for all operational matters including any change in law risk related to the Renewable Energy Target.
Andrew Pickering, Portfolio Manager for EIT, said the investment complements EIT’s portfolio stating: “We are delighted to have secured another investment in a stable, highly contracted asset that provides immediate strong cash yields to our investors. The investment in Hallett 4 strengthens EIT’s position as one of Australia’s pre-eminent renewable energy providers by increasing its renewable generation capacity to almost 350MW’s.”
Given its familiarity with very similar AGL Energy structures, ICG acted as financial advisor to EIT and was responsible for all aspects of the transaction which included arrangement and analysis of due diligence material, financial modelling and negotiating sale documentation. The acquisition follows the successful A$205m US Private Placement undertaken last month by ICG for Hallett Hill No 2 Wind Farm.
Hallett 4 commenced operations in December 2010 and is supported by long-term off-take and asset management agreements with AGL Hydro until May 2036. AGL Hydro’s obligations are backed by a parent guarantee from AGL Energy (S&P: BBB stable).