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Australia’s ICG doubles up on 55MW wind farm

In a vote of confidence for the renewables market Down Under, the firm's A$1.2bn energy trust has increased its clean generation portfolio to 350MW.

Infrastructure Capital Group, a mid-market investment manager, has completed its acquisition of 100 percent of Mumbida Wind Farm, a 55MW facility in Western Australia.

The firm first bought a 50 percent stake in the project in January 2012. It then exercised its pre-emptive rights to acquire the remaining 50 percent from Synergy, a local energy producer. The firm declined to disclose the transaction's size.

The wind farm is now fully owned by ICG’s Energy Infrastructure Trust, an A$1.2 billion ($870 million; €837 million) vehicle which has so far invested in nearly 350MW of renewable energy projects. The EIT targets investment in utilities and assets with long-term CPI-linked contracts, including gas pipelines, renewables and gas-fired power plants.

“Mumbida’s turbines, which have the annual capacity to power the equivalent of around 40,000 homes, provide renewable energy to Western Australia’s Water Corporation to offset the energy requirements of the Southern Seawater desalination plant near Bunbury,” said Andrew Pickering, ICG’s chair and portfolio manager of the trust.

Having received clearance from the development and environmental authorities, the asset could now be further expanded, ICG said.

“Mumbida is among the very few assets in today’s overly heated renewable energy market that carry the necessary attributes for a long-term investment,” he added.

ICG manages over A$1.7 billion in trusts and separate accounts.

The firm is in the process of raising A$1 billion for both its EIT and the A$450 million Diversified Infrastructure Trust, another flagship vehicle of ICG that invests in transportation assets, as Infrastructure Investor reported in April.