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Greenfield
One of the world’s most prominent direct investors is trying to prove it can do much more than back projects with capital by developing a C$6.3bn greenfield project in Montreal.
Infrastructure has always been about long-term, sustainable cashflows. But how you get there is changing, say InfraRed’s Harry Seekings and James Hall-Smith.
Wariness of fixed-price public-private partnerships could have wider implications since ‘a healthy PPP market needs a healthy construction sector’, warns market expert.
A first close is expected in Q1 this year, with commitments from the AfDB, EIB and a South African pension fund.
Nordic manager CapMan is leading the acquisition from Macquarie’s Green Investment Group, which invested in the project in July.
Mark McComiskey, head of infrastructure at AVAIO, talks about the opportunities and challenges presented by investing in new infrastructure assets.
The two investors are sharing the equity on a 60-40 split for the 36MW facility south of Perth.
The new fund has a target IRR of 5% and already owns a portfolio of 12 assets purchased from a previously liquidated SPARX fund.
The group targets earlier-stage projects after selling Europe’s largest onshore wind farm and ploughing €270 million into a new 235MW site in the same country.
The vehicle, which will be managed by Germany’s DWS Group, will help the US tech giant reach its goals of increased clean energy use within its supply chain and developing 2GW of renewables in China.