QIC-led group to buy Iona Gas Storage Facility

A consortium led by QIC Global Infrastructure Fund has agreed to buy Iona Gas Storage Facility for A$1.78 billion. EnergyAustralia, a member of the China Light & Power Group, is the seller. The investor group includes existing QIC clients. Iona is an underground natural gas storage facility that has a storage capacity of 23.5 petajoules.

PRESS RELEASE

BRISBANE, Australia, Oct. 7, 2015 /PRNewswire/ — A QIC led consortium has entered into a binding agreement to acquire the Iona Gas Storage Facility (Iona) west of Melbourne in Victoria, Australia, from EnergyAustralia, a member of the China Light & Power Group.
The successful QIC Consortium comprising the QIC Global Infrastructure Fund (QGIF) and existing QIC clients will acquire Iona for a purchase price of A$1.78 billion.
Financial close is expected to occur in the December-quarter 2015.
Ross Israel, Head of QIC Global Infrastructure said, “I’m delighted that we have been able to achieve this outcome for our clients and QGIF, our pooled global infrastructure fund. For QGIF, it builds on the successful first close achieved on 4 August 2015.
“Iona is a strategic, high-quality infrastructure asset in the Australian east coast gas market. It provides essential storage facilities to domestic integrated utilities to service intermediate and peak gas demand.
“We believe Iona is an attractive core infrastructure asset for our clients with an essential role in the Australian east coast energy supply value chain. It has long term contracts with its customers, which underpin stable and predictable cashflows while also presenting a platform for further growth and expansion opportunities.”
About Iona:
• Iona was the first underground natural gas storage facility in Australia.
• With a storage capacity of 23.5 petajoules, Iona is a significant storage facility servicing South-Eastern Australia.
• Iona has long term contracts with major integrated gas and electricity providers.
• The storage facility and associated processing plant is strategic in the supply of gas and generation of electricity to customers inVictoria, South Australia and up the east coast of Australia.
About QIC:
QIC is a global diversified alternatives investment firm offering infrastructure, real estate, private equity, liquid strategies and multi-asset investments. It is one of the largest institutional investment managers in Australia, with A$73.8 billion (US$56.9 billion)1 in funds under management, offering infrastructure, real estate, private equity, liquid strategies and multi-asset investment services. QIC has over 90 clients including governments, pension plans, sovereign wealth funds and insurers, spanning Australia, Europe, Asia, Middle East and the US. Headquartered in Brisbane, Australia, QIC also has offices in New York, San Francisco, Los Angeles, London, Sydney, andMelbourne. For more information, please visit: www.qic.com.
About QIC’s Global Infrastructure Business:
QIC is a long-term infrastructure investor with an established global platform. We currently manage A$6.0 billion (US$4.6 billion)2across 10 global direct investments, spanning transport, utilities and public-private partnership assets and have realized a further A$6.6 billion (US$5.1 billion) of investments for our clients. Our sector-centric investment strategy deconstructs risk across sector value chains, identifies relative value for investment, and drives a targeted origination approach that has enabled us to build diversified portfolios for our clients, protecting their capital while delivering strong total returns since 2006.
About QGIF:
QGIF is an unlisted investment vehicle that seeks to provide institutional investors with access to attractive, risk-adjusted returns through long-term exposure to a diversified portfolio of global infrastructure assets. The Fund has secured commitments from a range of institutional investors including Hostplus, one of Australia’s largest pension funds, an Asian sovereign wealth fund and one of China’sleading insurers.