Unsurprisingly, deals in core infrastructure sectors such as energy, transportation telecommunications and utilities have dominated the unlisted infrastructure deals market in recent years. Since 2005, 733 separate deals have been made by unlisted infrastructure fund managers in these four sectors, 317 (43%) of which were made in the energy sector including many significant transactions in cleantech and renewable energy assets.
This trend continued in H1 2010, with 26 of the 57 deals completed in the first half of the year directed towards the energy sector. These deals were made on a global scale in both the developed European and North American economies as well as in emerging markets. In April 2010, Platina Partners purchased the Fruges Wind Farm through its European Renewable Energy Fund. The vehicle purchased the facility from Infigen Energy for €71.3 million. Fruges is a 140MW wind power generation plant located in Pas de Calais, France.
In the US, USRG Power and Biofuels Fund III established Westerly Wind in March 2010. The fund is the sole owner of the company, which focuses on providing capital and expertise to advance the development of wind energy projects in all phases of development throughout the US.
A significant deal made in an emerging market was the $187 million purchase of a 92% stake in Termoemcali by Infrastructure Fund of Colombia and ContourGlobal. Termoemcali is the owner and operator of a 233MW geothermal power facility located near the city of Cali, Colombia. International Finance Corporation (IFC) provided a debt financing package for the transaction.
This blog in an excerpt from this month’s Infrastructure Spotlight. To register to receive Preqin’s monthly newsletter please click here.
For more information on deals made by unlisted infrastructure fund managers please see Preqin’s Infrastructure Online service.