London / Toronto, 24 December 2020
Macquarie Infrastructure and Real Assets (“MIRA”), via Macquarie European Infrastructure Fund 4, has reached an agreement to sell its 69.4 per cent interest in Società Gasdotti Italia S.p.A (“SGI”) to Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”).
SGI is the largest independent gas transmission operator in Italy, with a 1,700-kilometre high pressure pipeline network transporting natural gas to key industrial and urban centres. MIRA acquired SGI in a consortium with Swiss Life and has since supported the growth of the company through the construction of the San Marco-Recanati and Larino-Chieti pipelines as well as the development of a gas transmission network in Sardinia with SNAM.
Jiri Zrust, Senior Managing Director and Head of Country Coverage for MIRA in Europe, said: “We are proud to have supported SGI as it has increased investment in its network infrastructure to ensure the continued delivery of safe and reliable energy to communities across Italy. SGI is helping to shape the future of Italy’s energy networks and we are delighted to have found a new owner who will oversee the next stage of its development.”
Dale Burgess, Senior Managing Director for Infrastructure & Natural Resources of Ontario Teachers’, said: “This investment is in line with our strategy to acquire core, regulated utility assets that provide essential services and have highly predictable cash flows. We believe that SGI’s network is well-positioned to benefit from and enable the shift to low- or zero-carbon alternatives like green hydrogen and biomethane to support broad decarbonisation efforts in Italy and Europe.”
In October 2020, SGI commissioned leading energy consultancy DNV GL to assess the feasibility of transitioning its gas network from natural gas to renewable gases. The study will support SGI’s ambitions to decarbonise the delivery of energy to Italian homes and businesses through its gas network.
MIRA has invested in Italy’s essential infrastructure for nearly two decades, overseeing the delivery and operation of utility networks, renewable energy projects, and transport infrastructure across the country. In addition to SGI, MIRA’s managed infrastructure funds are currently invested in Hydro Dolomiti Energia S.r.l, an owner of a portfolio of hydro power generation facilities across Northern Italy.
The terms of the transaction have not been disclosed. Completion of the transaction is subject to customary closing conditions and regulatory approvals.
Macquarie Infrastructure and Real Assets
Patrick Gallagher (London)
+44 7795 353820
Ilaria Calvanese (Milan)
Macquarie Infrastructure and Real Assets (MIRA) is one of the world’s leading alternative asset managers. For more than 25 years, MIRA has partnered with investors, governments and communities to manage, develop and enhance assets relied on by more than 100 million people each day. As at 30 September 2020, MIRA managed approximately €125 billion in assets that are essential to the sustainable development of economies and communities, including: 147 portfolio businesses, ~500 real estate properties and 4.8 million hectares of farmland.
MIRA is a part of Macquarie Asset Management, the asset management arm of Macquarie Group, a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs approximately 16,400 people and is listed on the Australian Securities Exchange (ASX:MQG).
The Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with C$204.7 billion in net assets (all figures at June 30, 2020 unless noted). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.5% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific regional offices are in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded as of January 1, 2020, invests and administers the pensions of the province of Ontario's 329,000 active and retired teachers.