AMP funds to take Malakoff's 50% in 420-MW Aussie wind farm

Vestas turbines at the 420-MW Macarthur wind farm in Australia. Courtesy of Vestas Wind Systems A/S

Australian infrastructure investor AMP Capital will acquire Malakoff Corp Bhd’s 50% stake in the 420-MW Macarthur wind farm in Victoria state, Australia in a roughly AUD-880-million (USD 603.4m/EUR 544m) deal.

More specifically, the purchase will be on behalf of investors in the AMP Capital Community Infrastructure Fund (CommIF) and the AMP Capital Core Infrastructure Fund (CIF), AMP said on Wednesday. It expects to reach financial close on the deal by March 2020.

The Macarthur wind farm, which uses 140 pieces of Vestas’ 3-MW V112 turbines, was put online in 2013. Malaysia's Malakoff in 2013 bought the 50% interest previously held by Meridian Energy Ltd, while AGL Energy (ASX:AGK) in 2015 sold its 50% stake to HRL Morrison & Co managed funds. AGL operates and maintains Macarthur and buys its power under a fixed-price contract until 2038.

AMP Capital said that this is the first renewable energy investment for CommIF . Upon completion of the transaction the fund will hold 15 assets in total with an enterprise value of about AUD 4.6 billion.

MUFG Bank, PwC, King & Wood Mallesons, Aurecon, and Frontier advised AMP Capital in the Macarthur stake acquisition.

(AUD 1 = USD 0.69/EUR 0.62)

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