Australia’s largest gas infrastructure business APA Group (APA) announced it would acquire the 80 MW Emu Downs Wind Farm in Western Australia and development rights for an adjacent 130 MW development site for $171 million. The acquisition is underpinned by a 20 year revenue agreement. APA plans to raise $300 million through an institutional placement to fund this acquisition and to partially fund the organic expansion of its energy infrastructure portfolio across Australia over the period to June 2012.
APA Managing Director, Mick McCormack said “Emu Downs complements and enhances APA’s gas infrastructure assets in the Perth region, including the Parmelia Gas Pipeline and Mondarra Gas Storage Facility, which can support gas fired generation in the region.”
APA acquires 80 MW Emu Downs Wind Farm and adjacent development site for $171 million, plus acquisition costs of $9 million. The acquisition represents a FY12 EBITDA multiple of approximately 8.5 times and is operating cash flow per security accretive in FY12. APA has secured 20 year revenue agreements for the total electricity and Renewable Energy Certificate output of Emu Downs. Emu Downs complements and enhances APA’s gas infrastructure assets in the Perth region – the Parmelia Gas Pipeline and Mondarra Gas Storage Facility.
APA Managing Director, Mick McCormack said the acquisition was consistent with APA’s strategy of leveraging its gas infrastructure portfolio to develop related energy projects. “We look for long-term predictable cash flow from all our infrastructure assets, as well as the ability to drive further value from our existing gas infrastructure portfolio. “Emu Downs satisfies these criteria – it is a renewable energy project located in an area with a high yielding and predictable wind resource. It’s ideally located to complement and enhance APA’s gas infrastructure assets in the Perth region which can be used for back-up gas-fired electricity generation. “APA is able to deliver a compelling total energy solution for our customers, with Emu Downs and our gas infrastructure assets providing a foundation for the future development of supporting gas fired generation in the region, as well as enabling APA to capture revenue and operating synergies” he said.
