Morrison & Co launches sale of up to US$1bn worth stake in Macarthur wind project

Infrastructure manager Morrison & Co has hired boutique ICA Partners to initiate the sale of half of the share in Australia’s second-biggest wind farm, Macarthur Wind Project.

The 420 MW wind farm is jointly owned by funds managed by Morrison and AMP Capital. In 2019, AMP Capital has acquired a 50% stake for US$880 million on an enterprise value basis. Morrison targets to close up to a US$1 billion deal for the sale. 

The 50% Macarthur interest is expected to attract investors from mid-market Australian superannuation funds and infrastructure managers. With the output fully contracted to the Baa2 rated AGL, the stake will be valued like an AGL Energy bond and would potentially offer single-digit annual returns to its buyer.

The project has been in operation since 2013 and has an offtake arrangement with one of AGL Energy’s subsidiaries.