AMP Capital has agreed to acquire an additional 6.8 per cent stake in the Victorian Desalination Project (VDP) from Infrastructure Australia LLP on behalf of investors in its Community Infrastructure Fund (CommIF).
The deal will take AMP Capital’s share of the VDP to 16.5 per cent, following the acquisition of a 5.2 per cent stake in September 2016 and 4.55 per cent stake in December 2017.
VDP, delivered as a public private partnership (PPP), is the largest desalination plant in the Southern Hemisphere. It is a rainfall-independent source of drinking water and capable of supplying up to 150 gigalitres a year, which is approximately one third of Melbourne's annual water consumption.
“The acquisition increases the fund’s exposure to the water sector and will sit alongside existing water assets such as Riverland Water and AquaTower."
The plant uses state-of-the art technology and processes, including reverse osmosis to desalinate water in a highly energy-efficient way. The facility’s living green roof is covered with indigenous vegetation and is located in a site that features eight kilometres of walking, cycling and horse-riding paths that link with existing trails in the area for community use.
Charles Savage, CommIF Fund Manager, said: “The Victorian Desalination Plant is known for its world-class design and sustainable practices. The acquisition increases the fund’s exposure to the water sector and will sit alongside existing water assets such as Riverland Water and AquaTower.
“CommIF holds a strong track record in the community infrastructure market as a leading investor and manager of PPP assets. We look forward to continuing our momentum by working with state governments and key stakeholders to deliver value-for-money projects that benefit the community.”
CommIF invests in high-yield, brownfield, social infrastructure PPP assets in Australia and New Zealand in sectors such as education, health, corrections, community housing, water and recreational facilities. The fund provides investors with the opportunity for stable, long-term returns. The fund has 13 assets with net asset value of more than A$760 million