Global Infrastructure Partners (GIP), the New York-headquartered fund manager, has – through its Global Infrastructure Partners II fund – formed a strategic partnership with Actividades de Construccion y Servicios (ACS), the Spanish developer.
The partnership will comprise two elements, the first of which sees the acquisition by GIP of a stake of up to 24.4 percent in Saeta Yield (Saeta), which owns 688 megawatts (MW) of operating wind and solar assets in Spain.
The second is the acquisition of a 49 percent interest in a company which will own 460MW of renewable energy assets in Spain, Portugal, Mexico, Uruguay and Peru. This company will be responsible for the future development of renewable energy assets around the world.
In addition, Saeta has filed an intention to launch an initial public offering of its shares which, if successfully completed, will see GIP II and ACS own up to approximately 24.5 percent with the public owning the remainder.
The GIP/ACS partnership will have exclusive rights to ACS’ development pipeline of renewable energy assets, with GIP II and ACS jointly funding and managing these future projects. However, GIP’s investment depends on the successful completion of the Saeta IPO.
“This is an outstanding opportunity to combine the world class industrial and renewable energy development experience of ACS with GIP’s renewable energy sector expertise and business model of value added infrastructure investment,” said Adebayo Ogunlesi, chairman and managing partner of GIP, in a statement.
GIP II closed on $8.25 billion in October 2012, making it the largest infrastructure fund ever raised. It followed a debut $5.64 billion fund, which closed in 2008 following GIP’s establishment in May 2006.
As well as New York, GIP has offices in London, Colorado Springs, Connecticut and Sydney. It targets investments in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment, and waste management.