Infrastructure Capital Group (ICG), an Australian infrastructure investment firm, has emerged as the preferred bidder for Brookfield’s energy business, Enwave Australia.
The Australian Financial Review reports the firms signed a deal on Sept. 27. The transaction is reportedly valued at A$420 million ($288 million), including debt.
Investment bank Citi facilitated the competitive bidding process for Enwave, which includes Tasmanian gas distributor TasGas. ICG beat out several other bidders, including CKI’s Australian Gas Networks (formerly Envestra) and First Gas, owned by First Sentier (formerly Colonial First State).
Enwave provides large-scale heating and cooling services to a variety of customers through its network of underground pipes. It utilizes a geothermal technology to provide deep lake water cooling, which is about 2.5 times more efficient than conventional cooling and leads to a 90 percent reduction in energy usage compared to conventional heating and cooling systems.
Brookfield said it acquired it’s first district energy business in Toronto in 2012, in an effort to leverage its real estate presence, knowledge base and operational expertise. Enwave has networks in 12 cities across North America and Australia.
The sale is expected to close before the end of the year.
