Brookfield Renewable Energy Partners (BREP), the renewable power platform of Brookfield Asset Management (BAM), has agreed to acquire a diversified renewable energy portfolio from Brazilian power holding company Energisa for an equity purchase price of R$1.4 billion (€448.9 million; $556.6 million), the Toronto-based firm said in a statement.
The portfolio, whose acquisition BREP will finance with its institutional partners with available capital, comprises 163 megawatts (MW) of hydro power, 150MW of wind power and 175MW biomass for a total 488MW of operating capacity, including a 55MW biomass plant expansion in the near term. Brookfield Renewable will maintain a 40 percent stake in the portfolio according to the statement.
“This is an attractive opportunity to acquire a diversified portfolio of renewable operating assets in a market we know well, and with an average contract duration of 10 years,” Brookfield Renewable president and chief executive Richard Legault said. “Brazil remains a long-term growth market in need of new supply, and we remain well positioned to find accretive growth opportunities.”
The transaction, which has an enterprise value of R$2.4 billion, is expected to close in the first quarter of 2015.
In addition to Brazil, BREP also owns assets in the US, Canada, the Republic of Ireland and Northern Ireland. Its portfolio is primarily hydroelectric and totals approximately 6,700MW of installed capacity – enough to power more than 3 million households on average per year.
Formed in September 2011 when Brookfield Asset Management decided to combine its wholly-owned subsidiary Brookfield Renewable Power with the Brookfield Renewable Power Fund, BREP now operates one of the largest publicly-traded pure-play renewable power platforms globally. It is cross-listed on the Toronto and New York stock exchanges.