HESTA and Aware Super have announced their investment in Intera Renewables, a newly-established platform that would aggregate five of Palisade Investment Partners’ operational renewable energy assets across Australia into a single entity of scale.
With particular emphasis on developing and constructing new renewable energy projects, Intera would focus on a combination of long-term value creation through organic growth and provide investors with stable income returns underwritten by its existing, high-quality portfolio of operating assets.
The assets would comprise six wind farms and one solar farm across Queensland, South Australia, Victoria and Tasmania.
It would be owned by Palisade’s Renewable Energy Fund (50 per cent), Palisade’s Diversified Infrastructure Fund (~7 per cent), Palisade direct investment clients, HESTA and the Clean Energy Finance Corporation (CEFC), plus Aware Super as a co-investor.
Palisade chief executive Roger Lloyd said the launch of Intera came at a time of “unprecedented momentum within the energy sector”.
“This momentum is being driven by a combination of the inevitable retirement of fossil fuel generation, coupled with ambitious net zero targets across the Australian economy, requiring significant investment in renewable energy generation, storage and transmission,” Lloyd said.
“Palisade’s extensive track record combined with the scale of its existing portfolio, positions Intera to take advantage of the intrinsic growth opportunities created by this thematic, while continuing to provide investors with stable, high-quality income returns through the platform”.
Jeff Brunton, HESTA head of portfolio management, said: “As a long-term investor, HESTA is looking to invest more in the transition to a low-carbon future, with a target of 10 per cent of the total portfolio invested in renewables and other climate solutions by 2030.
“To achieve this target, we’re looking for ways to invest efficiently and at scale. The Intera model is one approach that’s helping us to achieve this, and we look forward to building this platform with our investment partners.”
According to Aware Super senior portfolio manager for infrastructure Mark Hector, the super fund was excited to deepen its $2 billion commitment to renewable energy and climate solution opportunities.
“The addition of the Intera Renewables platform offers attractive benefits such as geographic diversification, reduced downside exposure and enhanced scale and operational efficiencies,” he stated.
Intera’s portfolio financing facility was provided by a banking consortium that included Westpac, ANZ, and Commonwealth Bank, Bank of China, and Japanese banking entities Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation (SMBC).