NSW Electricity Networks (NSWEN) has announced the acquisition of the 99-year lease of TransGrid, owner and operator of the electricity transmission network of the State of New South Wales in Australia.
The network of high-voltage power lines spans close to 13,000 km and serves Sydney and Canberra, the country's economic and political capitals.
As announced earlier by the New South Wales Government, NSWEN has been selected to acquire of the 99-year lease of TransGrid's core network infrastructure assets. The total value of the transaction is approximately A$10.258 billion (US$7.4 billion).
Caisse de dépôt et placement du Québec (CDPQ) will hold 24.99% of the equity in the project, which represents an investment of A$1.2 billion (US$856,4 million).
In addition to CDPQ, NSWEN includes Spark Infrastructure and Hastings Funds Management, two Australian investors who have considerable experience in managing electricity networks in Australia, as well as investors Tawreed Investments Ltd., a wholly-owned subsidiary of the Abu Dhabi Investment Authority, and Wren House Infrastructure Management, two global investors with a long track record in long-term investing.
Macky Tall, Senior Vice-President, Infrastructure, at CDPQ, stated:
"The acquisition of the TransGrid lease is in line with our strategy to invest in high-quality assets, alongside local partners with sophisticated knowledge of the market and vast operational expertise. Through this transaction, we continue to diversify our assets globally. TransGrid's regulated revenues will generate stable and predictable returns for our clients over the long term."
Rick Francis, Acting Chair of NSWEN, commented:
"The consortium will rely on the extensive experience of its members, whose common goal is to make long-term investments in high-quality infrastructure assets. The members of the consortium have successfully participated in privatizations throughout the world and have the expertise required to ensure a harmonious transition of the public entities to sustain them throughout their growth." NSWEN is committed to continue operation in a safe, reliable and efficient manner.
The members of NSWEN have invested in a wide range of public infrastructure worldwide, including electricity, gas, water distribution, ports, key arterial road infrastructure, and airports.