Infrastructure Capital Group (ICG) is pleased to announce that Energy Infrastructure Trust (EIT) has agreed to acquire Tasmanian gas distributor Tas Gas Networks, as part of the full acquisition of network business Enwave Australia. The Enwave Australia business was acquired from Brookfield Infrastructure Partners, the listed infrastructure company of Brookfield Asset Management.
Tas Gas Networks comprises an 837km network of gas pipelines across Tasmania and is one of the youngest gas distribution networks in Australia. Tas Gas is also the second largest retailer in Tasmania, supplying gas to more than 14,000 industrial, commercial and residential customers.
In addition to Tas Gas, Enwave Australia owns and operates a district energy and utility networks business which develops, builds, owns and operates multi-utility precincts nationally. This currently includes precincts in Central Park, NSW, Mascot, NSW and Tonsley, SA. Enwave Australia owns the utility network at these sites which supplies thermal energy, electricity, gas and recycled water to end users.
Andrew Pickering, ICG Chairman, said the addition of Enwave Australia continues EIT’s long history of investment in Australian energy-related infrastructure assets and enhances the geographical and sector diversification within EIT. “We are very pleased to add another high-quality core infrastructure asset to the EIT portfolio to leverage our energy sector knowledge and experience. We view this to be an excellent long-term asset for EIT and highly complementary to EIT’s existing assets.”
Tom Laidlaw, Managing Director of ICG, said “We are very pleased to add our first Tasmanian investment to our managed portfolio. Many of EIT’s investors are Australian superannuation funds representing millions of members and we’re pleased to be able to help Tasmanians invest back into Tasmania.”
The transaction does not require any regulatory approvals and financial close is expected to occur towards the end of 2019. ICG intends to rebrand Enwave Australia shortly after acquisition.
EIT, one of Australia’s largest portfolio of energy assets, sits alongside ICG’s Australian Renewable Income Fund and Diversified Energy Trust as institutional offerings for investors in Australia and around the globe. Following the acquisition of Enwave Australia, the EIT portfolio comprises approximately $1.5 billion of equity invested in in wind farms, ports and gas pipelines across Australia. ICG manages total assets valued over $2 billion.