Canada’s Northleaf and Australia’s Palisade Buy Stake In Wind Farm

EnergyAustralia, the Australian unit of Hong Kong-listed power generator CLP Holdings Ltd., has agreed to sell its majority stake in a wind farm to Canada’s Northleaf Capital Partners and Australia’s Palisade Investment Partners, a person familiar with the matter said Tuesday.

EnergyAustralia will receive proceeds, net of costs, of 228 million Australian dollars, for its 75% stake in the Waterloo wind farm, the person said, adding that the deal is expected to close by the end of June. Waterloo has a generating capacity of 111 MW. It is located 30 kilometers from the town of Clare in South Australia state and operates 37 Vesta turbines which supply energy to 9,000 homes.

Northleaf Capital Partners managing director and co-head of  infrastructure investment Jamie Storrow later said in a statement that the investment in the Waterloo wind farm offered attractive, risk-adjusted returns based on a projected asset lifespan of more than 25 years and access to contracted revenue through the off-take arrangements with EnergyAustralia.

“Direct investment in mature, low risk wind energy assets like the Waterloo wind farm is consistent with Northleaf Capital Partner’s investment strategy and offers significant potential for stable, long-term returns,” Mr. Storrow said.

ANZ Banking Group Ltd. advised EnergyAustralia while Macquarie Group Ltd. advised the winning consortium, which has the option to participate in a planned 18 MW, or six-turbine, expansion of the wind farm which is currently being assessed for local government approval. Northleaf was spun out of TD Capital Private Equity Investors, the private equity fund, secondary and co-investment arm of TD Bank Financial Group four decades after its 1969 establishment.

The firm’s infrastructure unit is focused on direct investments in core assets in OECD countries, with a preference for deploying capital alongside other institutional investors with sector expertise.

Palisade’s other renewable investments include the 94.5-MW Hallet 1 wind farm in South Australia, which has a long-term supply agreement with AGL Energy Ltd. and an 82-MW peaking plant in Merredin, east of Western Australia state’s capital Perth. Peaking plants typically operate when there is a surge in demand for electricity.