The $201 billion Ontario Teachers' Pension Plan along with Morrison & Co, on behalf of the Utilities Trust of Australia have acquired The Infrastructure Fund's ownership stake in the Sydney Desalination Plant.
Following the transaction, Ontario Teachers' ownership of the plant will increase to 60% while UTA's interest (managed by Morrison & Co) will increase to 40%.
Ontario Teachers', UTA and The Infrastructure Fund acquired Sydney desalination plant in 2012 through a 50-year lease from the government of New South Wales.
"Sydney Desalination Plant has been a great investment for Ontario Teachers', and this incremental acquisition demonstrates our commitment as long-term, dedicated and constructive owners," said Ontario Teachers' senior managing director, infrastructure and natural resources Dale Burgess.
|Sponsored by OnePath Life|
Join us on the New Path
"Australia remains an important investment destination for us, particularly as we look to expand our portfolio in the Asia-Pacific region in the coming years."
The pension fund is continuing to work side-by-side with Morrison & Co and SDP's management team to ensure SDP fulfils its essential purpose of providing water supply security to the community it serves, he added.
"At Morrison & Co, we aim to invest in businesses that serve our communities' most vital long-term needs. SDP fits that bill. It's a high-quality and well-managed core infrastructure asset that addresses the challenge of providing water supply security in a changing global climate," Morrison & Co head of Australia and New Zealand Paul Newfield said.
"We are committed, long-term investors and look forward to working together with Ontario Teachers' and SDP's management team to ensure SDP continues to fulfill this critical role."
Chief executive of Sydney Desalination Plant Philip Narezzi said: "We look forward to continuing to work with both Ontario Teachers' and Morrison & Co in ensuring that SDP continues to be a world-class desalination facility that provides reliable and sustainable drinking water to Sydney residents whenever it is required."