The open-ended infrastructure fund, Utilities Trust of Australia (UTA), managed by Morrison, has acquired an additional 60% stake in the Sydney Desalination Plant from Ontario Teachers’ Pension Plan to take full ownership of the asset.
UTA exercised its pre-emptive right to acquire the additional stake. The transaction price was not disclosed, but the desalination plant is valued at around A$2.5bn (€1.4bn).
The plant, powered entirely by renewable energy, was completed in 2019 and has the capacity of producing 255bn litres of drinking water and supplies up to around 250m litres of water per day – around 15% of Sydney’s daily drinking water needs.
Under Ontario Teachers’ and UTA’s shared ownership, the business has transitioned from a government-owned entity to a private company, which had substantially rebuilt the plant following a 2015 tornado.
Gordon Hay, partner at Morrison, said: “SDP is an important asset for Sydney, delivering vital water security in a changing climate. Having been invested in the plant since 2012, UTA is well positioned to continue supporting Sydney’s evolving water security needs. This transaction reinforces UTA’s long-term commitment, backed by strong liquidity and supportive investors.”
Jan Brand, managing director, infrastructure & natural resources at Ontario Teachers’ Pension Plan, said: “Sydney Desalination Plant has been a great investment for Ontario Teachers’, and our more than a decade-long ownership reflects our commitment to being responsible, long-term stewards of essential infrastructure.
“We have worked closely with our partners to support the success and resilience of the asset, ensuring it continues to deliver reliable water security for the community it serves. We are proud of what has been achieved and wish the SDP and UTA teams continued success in this next chapter.”
Philip Narezzi, CEO, at Sydney Desalination Plant, said: “UTA has been a significant investor in SDP for many years, and we are pleased this acquisition will provide continuity for our people and customers. SDP will continue to operate as usual. With ongoing support from a foundation owner, we are well placed to continue providing high quality drinking water, enhancing Greater Sydney’s system resilience.”
This transaction follows successful partial divestments of UTA’s stakes in Transgrid and Perth Airport to rebalance the portfolio.
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