UBS Asset Management’s real estate and private markets business announced Archmore International Infrastructure Fund II has agreed to acquire a 10.8 percent interest in CPV Towantic Energy Center, a 785-megawatt combined-cycle power generation facility currently under construction in Connecticut, marking the fund's second investment in the United States and fifth investment in the fund.
The interest is being acquired from a General Electric unit, GE Energy Financial Services. GE will retain a 24.5 percent stake in the project, with the other partners in CPV Towantic being affiliates of Ullico (13.7 percent) and Competitive Power Ventures (51.0 percent).
The completed state-of-the-art CPV Towantic facility will sell energy, capacity and ancillary services into ISO-New England, one of the most developed power markets in the United States serving more than 6.5 million businesses and households across six states in the New England region. The facility has fixed capacity pricing for the first seven years of operations, providing it with stable cash flow over that period.
Utilizing the latest generation of GE turbines, construction of the plant is being undertaken by GE and Gemma Power Systems, with oversight by CPV. Construction is approximately 65 percent complete, with commercial operations scheduled to commence prior to June 1, 2018.
The acquisition is expected to close by mid-September.
