Australia’s AMP Capital has increased its holding in Victorian Desalination Project (VDP) to 16.5%, following the purchase of a 6.8% stake from Infrastructure Australia.

IPE understands the incremental stake cost was around AUD100m (€63m). AMP declined to comment on the price.

The asset will go into AMP’s Community Infrastructure Fund (CommIF), which manages 13 assets valued at AUD760m.

The latest deal comes after AMP bought a 4.55% stake in the Australian desalination plant in December 2017. It made its first investment in September 2016, taking an initial 5.2%.

VDP - a public private partnership (PPP) project - is contracted to deliver water to Melbourne until 2039.

Charles Savage, CommIF fund manager, said: “The acquisition increases the fund’s exposure to the water sector and will sit alongside existing water assets such as Riverland Water and AquaTower.”

He said CommIF invests in high-yield, brownfield, social infrastructure PPP assets in Australia and New Zealand, in sectors such as education, health, corrections, community housing, water and recreational facilities.