Zak Bentley
First-round bids for the Luxembourg-based utility are expected towards the end of next month.
The fund is the latest London-listed infrastructure offering to stall as the sector suffers from perceptions around the Labour party’s policies.
An IPO on the Australian Securities Exchange is expected by the end of the year for First State, which is still fundraising for its second European infrastructure fund.
The sale of South Staffordshire comes five years after its initial £563m investment and two years after it sold 25% of the company.
Rolling stock lessors in the UK have enjoyed a decade of strong and stable business. Yet this market is being disrupted in a way that presents significant challenges for the incumbents.
The deal comes as Hermes continues to fundraise for £1bn for its second infrastructure vehicle.
Two UK ministers, two conferences and the disturbing message that business-friendly governments are not a panacea to private capital’s freedom to invest in infrastructure.
The fund has a target size of €100m and is eyeing returns in the ‘mid-single digit’ range.
Senior staff members will own a growing ‘material equity stake’ in the business.
The fund has committed to offshore wind projects in Taiwan and Australia, as well as geothermal sites in Germany.