La Caisse de dépôt et placement du Québec (CDPQ) has joined an Abu Dhabi Investment Authority subsidiary in a AUD10.25bn (€6.9bn) Australian energy deal.
The Canadian pension fund manager and sovereign wealth fund, along with Wren House Infrastructure Management, bought the 99-year lease on TransGrid, which runs the State of New South Wales’s electricity network.
CDPQ will hold 24.99% of the equity – worth around AUD1.2bn – in the consortium.
The amount of the ADIA’s investment are unknown.
The Middle-Eastern investor invested in the consortium through its Tawreed Investments subsidiary.
Australian investors Spark Infrastructure and Hastings Funds Management have also joined the consortium.
Macky Tall, senior vice-president of infrastructure at CDPQ, which recently opened its Sydney subsidiary, said: “The acquisition of the TransGrid lease is in line with our strategy to invest in high-quality assets, alongside local partners with sophisticated knowledge of the market and vast operational expertise.
“Through this transaction, we continue to diversify our assets globally.”
Tall said TransGrid’s regulated revenues will generate stable and predictable returns for its clients over the long term.
The network spans close to 13,000km and serves Sydney and Canberra.