CSC parts with 50% stake in Australia's 2nd largest wind farm

The Commonwealth Superannuation Corporation (CSC) has agreed to sell its 50% effective interest in the 420-MW Macarthur wind farm in Victoria to funds managed by Palisade Investment Partners and First Sentier Investors.

The news was announced by HRL Morrison & Co, which manages the asset and agreed the sale on behalf of CSC.

“Our divestment enables us to recycle capital from a mature, operating asset into three renewable-development platform investments. In this way we continue to seek strong returns for our customers by creating significant new renewable energy capacity across solar, wind, hydro and biogas projects that contributes directly to the pace of energy transition,” commented Alison Tarditi, chief investment officer of CSC.

Palisade said separately it will acquire the wind park on behalf of investors in its Renewable Energy Fund (PREF), while First Sentier will become a co-shareholder in the plant via its portfolio firm Atmos Renewables. They gave no financial details with regard to the deal.

This purchase will expand Palisade’s renewables portfolio to more than 1 GW, which was its initial target level.

The transaction is pending clearance by the Foreign Investment Review Board (FIRB) and is seen to close early next year.

Generating power since 2013, the Macarthur facility consists of 140 Vestas turbines and is currently Australia’s second-largest operating wind farm. It is fully contracted through to January 2038 under a 25-year power purchase agreement (PPA) with a unit of AGL Energy Ltd (ASX:AGL).

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