Argo Infrastructure Partners agrees to acquire 660 MW transmission project from Starwood Energy and Ares Management/EIF Group

Ares EIF, the power and infrastructure strategy at Ares Management, and Starwood Energy Group Global have signed an agreement to sell their respective stakes in  Hudson Transmission Partners (HTP) to an investment vehicle by Argo Infrastructure Partners, LLC. HTP is a joint venture that develops, constructs, operates and maintains the Hudson Transmission Project.

The Hudson Transmission project is a 660 MW electric transmission link between New York City and PJM Interconnection providing an alternative source of electric power of the New York Power Authority. The Hudson cable is entirely underground and underwater, using high voltage direct current (HVDC) technology. The route begins in Ridgefield, New Jersey, the site of the new Hudson converter station, where it interconnects with the PJM system at a PSE&G substation. The line follows existing railroad rights-of-way, through an inactive railroad tunnel to the edge of the Hudson River in Edgewater. It is then buried beneath the Hudson for approximately three-and-a-half miles to a landfall point near Pier 92 in Manhattan. The final stretch of cable is routed beneath the West Side Highway and ultimately into the ConEdison W. 49th Street Substation. The project was completed in June 2013.

The transaction is subject to customary regulatory approvals and is expected to close later in 2018 or in early 2019.

A subsidiary of PowerBridge, LLC of Fairfield, CT, the developer of the project, will continue to operate and maintain the asset on behalf of Argo Infrastructure and other stakeholders. 

Norton Rose Fulbright US LLP served as legal counsel to Ares EIF and Starwood; Bracewell LLP acted as Argo’s legal counsel.

Goldman Sachs & Co. LLC and PJ Solomon served as financial advisors to Ares EIF and Starwood.