Infrastructure is another relatively new asset class, gaining market traction off the back of Macquarie Bank’s innovative structuring in the 1990’s.
The Australian infrastructure sector has an unprecedented $550 billion project pipeline, supported by investment from all three levels of government across the country. Much of this is underpinned by the drive to a clean energy future, as well as continued investment in transport infrastructure.
M&A activity is prevalent both amongst the asset owners and the service providers supporting the sector
We prefer to refer to infrastructure style transactions as secure income stream transactions. There are many valuable infrastructure assets which do not have predictable cash flows. These transactions do not lend themselves to private sector ownership, with the unique debt intensive capital structures that characterise traditional infrastructure opportunities.
Infrastructure deals are generally underpinned by significant gearing, so the debt arrangements are critical and the Special Purpose Vehicle (SPV) structuring and financial model are central to the entire project.
Historically many infrastructure advisers come from a project finance background, often with less experience in value-adding M&A advice.
The team at Lewis Corporate Advisory brings infrastructure deal experience with a true M&A focus.
Examples of infrastructure transactions we have led include:
Renewables
- Advised Marubeni on sale of 39.9% stake in Hallett 4 Wind Farm
- Led Investec team that developed $750m Collgar Wind Farm
- Advised European renewables player on sale of Australian development sites
- Advised Korean bidder for Macarthur Wind Farm
Other Infrastructure
- Advising global engineering firm on Australasian acquisition strategy (current)
- Advised Aeroporti di Roma on sale of 20% stake in Airports Company South Africa
- Advised Enterprise Data Corporation on sale of two data centres to Vocus Communications
- Advised NSW coal fired electricity generator on strategic options
- Advised NSW coal fired electricity generator on acquisition of coal mine
- Advised Genesee & Wyoming on its acquisition of Freightlink
- Advised DP World on the sale of a 75% stake in its Australian port container terminals to Citi Infrastructure Partners
- Advised BPCC and N3TC toll roads on refinancings
- Advised AIIM on the raising of the African Infrastructure Investment Fund
- Advised AIIM on the raising of the Kagiso Infrastructure Empowerment Fund
- Advised IDC, Eskom and DBSA on establishment of Africa Power Investment Initiative
- Advised TRAC on its successful bid for the N4 East toll road
- Advised consortium bidding for Philippine toll roads
