A consortium comprising First Sentier Investors and Palisade Investment Partners is to buy a 50% shareholding in the 420MW Macarthur wind farm in south-west Victoria, Australia, for an undisclosed price.
Palisade said it will buy a stake in the project via its Renewable Energy Fund (PREF), while First Sentier will hold its percentage through a portfolio company called Atmos Renewables.
The transaction is due to complete in February 2022.
Macquarie Capital, White and Case and Clayton Utz acted as the consortium’s financial advisor, legal advisor and tax advisor respectively.
Macarthur has been operating since 2013.
Australian energy retailer AGL, which developed the project, retains the rights to the output of the project until 2038 under a power purchase agreement.
First Sentier and Palisade will acquire their interest in Macarthur through their existing co-investment in the Granville Harbour wind farm, which the latter developed prior to its commissioning in 2020.
Operations at Granville are now being undertaken by Palisade Integrated Management Services, which will provide contractual and technical oversight of the wind farm’s interest in Macarthur through an expanded asset management agreement.
A common debt facility has meanwhile been secured against both Granville and Macarthur, with the aim to optimise investment returns.
Palisade said that senior debt financing has been provided by mandated lead arrangers Mizuho Bank, Commercial Bank of China, DBS Bank and MUFG, the latter of which also acted as underwriter and bookrunner.
Palisade chief executive Roger Lloyd said: “We are delighted to secure this high-quality renewable energy investment on behalf of our clients, while also reaching the initial 1GW target we set out to achieve at the commencement of the fund.
“Having reached this initial milestone, we continue to pursue high quality renewable energy investments and participate in the ongoing transition to clean energy.”