The Infrastructure Fund announces the sale of its indirect stake in ElectraNet to Australian Retirement Trust

The Infrastructure Fund (TIF), managed by Macquarie Asset Management (MAM), today announced an agreement for the sale of its interest in ElectraNet to Australian Retirement Trust (ART).

ElectraNet is South Australia’s principal transmission network, delivering electricity from power generators to South Australia power networks and large directly connected clients, with over 6,600km of transmission lines and 99 high-voltage substations across a 200,000 square km service area.

Through its initial investment in 2003 and an additional investment in 2022, TIF holds a 17.1% indirect interest via Australian Utilities Trust (AUT), alongside Utilities Trust of Australia (UTA) and ART, which has a combined 54.1% direct interest in ElectraNet.

ART acquired TIF’s stake via pre-emption, a process which was available to AUT co-shareholders, at a price consistent with comparable transactions involving competitive processes.

Dr Annabelle Bennett, Board Chairman of Gardior as trustee of TIF said: "We are pleased to achieve this outcome on ElectraNet, as we seek to maximise value for TIF unitholders in line with the fund strategy."

Ani Satchcroft, Co-Head Infrastructure Asia-Pacific, MAM said: “MAM has been investing in and managing regulated utilities assets for over 30 years and has leveraged this experience to partner with the management team and our co-shareholders to support ElectraNet’s development, while creating value for TIF investors.

“ElectraNet’s critical infrastructure connects the National Electricity Market with the abundant renewable resources in South Australia, and during TIF’s ownership, we’re proud to have played a role in delivering reliable and sustainable power to homes, businesses and communities across the state.”

Michael Weaver, General Manager, Mid Risk Assets & UK at Australian Retirement Trust, said “ART initially invested in ElectraNet in 2004 and currently owns an 11.2% indirect interest via AUT.”  

“Over that time, we’ve had the chance to build our knowledge of the South Australian electricity transmission network and through our investment contribute to the growth and development of ElectraNet as an enabler of South Australia’s economic development and transition to renewable energy.  

“Increasing our stake in ElectraNet further strengthens ART’s commitment to Australia’s infrastructure and energy transition.  

“We believe it will continue to deliver attractive returns for our members across the nation.”

Through TIF’s stewardship, MAM has supported investment into the transmission network, facilitating stable access to energy across South Australia, supporting economic growth throughout the state’s regional communities and progressing South Australia’s target of 100% net renewable energy by 2027.

These investments included Stage 1 of Project EnergyConnect, which was completed in 2023 on time and within budget, facilitating 150MW of electricity transfer between South Australia, New South Wales, and Victoria.