Palisade funds Aussie wind farm expansion

The Australian infrastructure manager deployed $36m from its existing fund and two separately managed accounts for the Waterloo Wind Farm project.

Palisade Investment Partners has reached financial close on the Waterloo Wind Farm expansion project, in the south of Australia. 

Daniel Roberts, Palisade’s investment director, told Infrastructure Investor that around A$50 million (€33 million; $36 million) of project capital came from Palisade’s Diversified Infrastructure Fund (PDIF) and two separately managed accounts.

Roberts added Palisade has A$700 million in remaining undrawn commitments and is looking for additional assets to invest in. 

The Waterloo Wind Farm expansion is among the first large-scale renewable energy developments to reach financial close since the revised Renewable Energy Target was legislated by the Federal Parliament earlier this year.

The wind farm has been in operation since October 2010 and has a 25-year expected lifespan. It currently has 37 Vestas turbines generating enough clean energy to support more than 50,000 homes. Once the six additional turbines being built at the southern end of the facility boost its capacity to 131 megawatts, the wind farm will be able to power an additional 7,500 households. 

Roberts said the expansion project will add value to an asset that is already performing well: “The existing infrastructure was sized to accommodate the expansion at a low incremental cost. As such, the project will provide material enhancement to the existing stable, long-term returns received by our investors.”

“Our investors also continue to see an abundance of quality investment opportunities in the mid-market infrastructure space,” Roberts added, saying the firm planned to stay away from the larger end of the market, where competition is fierce. 

Sydney-headquartered Palisade currently has A$2 billion in funds under management and commitments. It invests in and manages a diversified portfolio of 20 infrastructure assets for its two flagship funds – PDIF and Palisade’s Australian Social Infrastructure Fund – as well as for its Direct Investment Mandate clients.