First State Investments makes first foray into French infrastructure

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.