DIF buys stake in Dutch wastewater PPP

The fund manager has acquired the shares from Veolia, bringing its holding in the project to 43.5%.

Schiphol, Amsterdam-based DIF has increased its shareholding in the Delfluent project, a Dutch wastewater public-private partnership (PPP).

The fund manager has acquired the stake from French utility Veolia, boosting its holding of the business from 32.5 percent to 43.5 percent. This is DIF’s second add-on acquisition in Delfluent after its purchase of Rabo Private Equity’s share of 24.5 percent in December 2012.

Delfluent is a €350 million wastewater treatment plant PPP that reached financial close in 2003 under a 30-year concession agreement. In operation since 2008, the project initially consisted of the design, build, finance and operation of the Harnaschpolder plant and the refurbishment of the Houtrust plant. Both are located close to The Hague.

Construction works were completed after a five-year period and Evides Industriewater, Holland’s second-biggest drinking water business, is now responsible for the operational performance of the project.

The transaction will be funded by DIF Infrastructure II, which closed on €571 million in September 2010. The firm has since been busy raising its third vehicle, which hit its revised hard cap of €800 million last March. The fund had an original target of €600 million.

This was followed by DIF’s takeover of Ampere Equity Fund, a renewables investment vehicle previously managed by Dutch lender Triodos, in November. The fund, which closed on €320 million in December 2008, has a portfolio spanning wind and solar projects in the Netherlands, Germany, France, Spain, Italy and the UK.