Ontario Teachers’ Pension Plan Board and the Utilities Trust of Australia (UTA) have increased their ownership stakes in the Sydney Desalination Plant (SDP) to 60% and 40% respectively.
Ontario Teachers and Morrison & Co, on behalf of UTA, said they have increased their holdings in SDP with their acquisition of The Infrastructure Fund’s (TIF) ownership stake in the plant. Financial details were undisclosed.
SPD, which is Sydney’s only non-rain dependent source of drinking water, supplies up to 15% of the Australian city’s needs.
In 2012, The the Government of New South Wales sold a 50-year lease on the plant to a consortium of UTA, TIF and Ontario Teachers at a cost of A$2 .3bn, which includes the plant and the pipeline connecting the plant to the water supply network.
Dale Burgess, senior managing director, infrastructure and natural resources of Ontario Teachers’, said: “SDP has been a great investment for Ontario Teachers’, and this incremental acquisition demonstrates our commitment as long-term, dedicated and constructive owners.
“Australia remains an important investment destination for us, particularly as we look to expand our portfolio in the Asia-Pacific region in the coming years.”
Paul Newfield, head of Australia and New Zealand for Morrison & Co, said: “At Morrison & Co, we aim to invest in businesses that serve our communities’ most vital long-term needs. SDP fits that bill. It’s a high-quality and well-managed core infrastructure asset that addresses the challenge of providing water supply security in a changing global climate.
“We are committed, long-term investors and look forward to working together with Ontario Teachers’ and SDP’s management team to ensure SDP continues to fulfil this critical role.”
Philip Narezzi, CEO of SDP, said: “We look forward to continuing to work with both Ontario Teachers’ and Morrison & Co in ensuring that SDP continues to be a world-class desalination facility that provides reliable and sustainable drinking water to Sydney residents whenever it is required.”