First State Investments is making its first infrastructure investment in France.
The Commonwealth Bank of Australia’s arm agreed to buy Coriance, a French district heating company, from KKR’s infrastructure funds and a co-investor.
Coriance operates 29 regulated district heating concessions in France, under which it supplies heat to residential, social and commercial buildings.
It also sells co-generated electricity to state-owned utility EDF and provides energy services in the heating sector.
Marcus Ayre, infrastructure investments partner at First State, said Coriance’s position as a leading operator of sustainable, reliable district heating network concessions, with a strong positive environmental dimension, was “especially attractive”.
Regulatory approval is still pending for the deal.