Infrastructure Capital Group closes Enwave Australia acquisition

Australian fund manager ICG took ownership of Tas Gas and other utility businesses operated by Enwave in a A$420m deal.

Infrastructure Capital Group has reached financial close on its deal to acquire Enwave Australia from Brookfield Infrastructure Partners, the listed entity managed by Brookfield Asset Management.

ICG acquired Enwave via its Energy Infrastructure Trust, which has approximately A$1.5 billion ($1.0 billion; €925.3 million) of equity invested in contracted assets across Australia, including wind farms, ports and gas pipelines.

Infrastructure Investor understands the value of the deal was A$420 million. However, the value was not disclosed and ICG declined to comment on the sum.

Enwave Australia owns and operates multiple district energy and utility network businesses across the country, the largest of which is Tasmanian gas distribution network Tas Gas. Tas Gas is the second-largest gas retailer in Tasmania and operates a network of 837 kilometres (520 miles) of pipelines across the state, supplying more than 14,000 customers.

Enwave’s other assets include precincts in Central Park and Mascot, both in New South Wales, and Tonsley in South Australia. The company owns the utility networks at these sites that supply thermal energy, electricity, gas and recycled water to end users.

Brookfield sold the business via an auction that was launched earlier this year. Infrastructure Investor understands that one of the underbidders for Enwave was First Sentier Investors, which made a bid via its New Zealand gas transmission business First Gas.

In a statement, ICG managing director Tom Laidlaw said: “We are delighted to complete on the acquisition of this high-quality core infrastructure asset. It is an excellent business, with a strong management team and is highly complementary to our existing portfolio of Australian energy-related infrastructure assets.”

ICG last year began raising its third vehicle, the Australian Renewables Investment Fund, with a target of A$1 billion.