Industry Funds Management (IFM) is set to become part-owner of the largest district heating network in the European Union through its stake in the Polish district heating business, Dalkia Polska.
Dalkia Polska signed an agreement to purchase 85 per cent of the heating network from the City of Warsaw for $500 million, with staff to hold on to the remaining 15 per cent.
The privatisation of district heating in Warsaw increases IFM’s investment in the sector to three out of the four major cities in Poland.
IFM head of infrastructure for Europe, Christian Seymour, said IFM was attracted to the project due to Poland’s strong economic fundamentals and the fact it will give investors greater exposure to a regulated and growing energy sector.
“This investment complements our existing portfolio and strategy of responsibly acquiring core operating infrastructure investments for the long term across Europe and North America,” Seymour said.
The deal falls on the one year anniversary of IFM’s increased investment in Dalkia Polska to 40 per cent.
The heating network in Warsaw is the largest in the European Union, with more than 1,700km of pipelines supplying 80 per cent of buildings in the city.
