New Brookfield renewable energy vehicle to top $13bn

Toronto powerhouse Brookfield Asset Management is asking for approval to consolidate its renewable energy portfolio. Doing so would create a monster pure play energy business that would span Brazil, Canada and the US.

A planned consolidation in motion at Brookfield Asset Management (BAM) could create a C$12.8 billion (€9.4 billion; $13 billion) pure play publicly traded partnership that would eventually seek listing on the New York Stock Exchange (NYSE).

BAM senior vice president of media Andrew Willis told Infrastructure Investor the Toronto-based asset management company would need unit-holder approval from its existing Brookfield Renewable Power Fund in order to combine the vehicle with the assorted South America and US renewable power businesses within the Brookfield franchise. 

The resultant partnership, named Brookfield Renewable Energy Partners (BREP) would operate akin to Brookfield Infrastructure Partners (BIP), the flagship Brookfield offering.

Willis indicated Brookfield would put its proposed Brookfield Renewable Energy Partners up for unit-holder vote in November, adding Brookfield is “hopeful” the partnership will meet approval.

Willis called Brookfield Infrastructure Partners “the template” for the projected BREP.

Like BIP, BREP would list on the Toronto Stock Exchange (TSX) and eventually seek listing on the NYSE. Though Willis could not anticipate a timeline for NYSE inclusion, he said Brookfield was “very keen” on offering BREP stateside.

“BREP would be our primary vehicle for expanding our renewable energy business,” Willis said. “It would be our focus”.

The recombinant BREP would break down its investment profile among Brazil, Canada and the US, with Canada and the US making up 40 percent apiece of the portfolio and Brazil having the remaining 20 percent.

As a renewable energy partnership, BREP would concentrate on hydraulic power. Its $6 billion market capitalization would mean BREP could finance future Brookfield activity in the space.

Willis said the partnership would provide “greater liquidity and access to capital”. The partnership would be 27 percent unit holder owned and 73 percent owned by Brookfield. Each unit holder would get what Willis called a “one-for-one” exchange.