OMERS acquires 20% stake in Australia's TransGrid

The deal is estimated to be worth around A$2 billion ($1.4 billion). The seller is Kuwait Investment Authority (KIA), according to a release.

A consortium comprising KIA, Utilities Trust of Australia, Caisse de depot et placement du Quebec (CDPQ), Abu Dhabi Investment Authority (ADIA), and local energy project manager Spark Infrastructure acquired 100% of TransGrid in 2015 for A$10.3 billion. At the time, Utilities Trust of Australia was controlled by Hastings Fund Management, which has since rebranded as Vantage Infrastructure in 2018.

TransGrid’s transmission network provides electricity to around eight million people in New South Wales and the Australian Capital Territory. About 90% of its leased assets service households and small businesses covered by government-regulated pricing. The remaining un-regulated assets are considered well-positioned to leverage growing demand for power from renewable sources.

This is OMERS’ second infrastructure investment in Australia, following participation in the acquisition of a 50-year lease on the Port of Melbourne for A$9.7 billion in 2016. QIC Future Fund and Global Infrastructure Partners also took part in the deal. OMERS-owned Oxford Properties also has interests in Sydney real estate.

As of December 2019, OMERS had C$109 billion ($81 billion) in assets under management, of which about 19% was allocated to infrastructure. It plans to increase this to 22.5% by 2025. Other recent activity in Asia includes the purchase of a 22% stake in IndInfravit Trust, which controls a portfolio of toll roads in India, for about $120 million. It was OMERS’ first investment in the country.

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• Topics
• Australasia
• Infrastructure
• Trade sale
• Expansion
• Australia
• Ontario Municipal Employees Retirement Scheme
• energy