Fiera Infrastructure Inc. ("Fiera Infrastructure"), through its wholly owned subsidiary, Aquila GP Inc., a leading infrastructure management firm and an affiliate of Fiera Capital Corporation ("Fiera Capital" or the "Firm") (TSX: FSZ), announced today the acquisition of an additional equity interest in Thames Water (the "Asset"), valued at approximately C$200 million, from SAS Trustee Corporation.
The increase in equity interest comes through investment in Kemble Water Holdings Limited, the ultimate holding company of Thames Water, and further solidifies Fiera Infrastructure’s governance through a position on the Board of Directors. The investment was made on behalf of Fiera Infra LP, an infrastructure fund under its management, alongside three affiliated entities of Desjardins Group ("Desjardins") as co-investors.
Thames Water is the largest provider of water and sewerage services in the UK, supplying 2.6 billion litres of clean drinking water and safely removing 4.4 billion litres of wastewater for over 15 million customers across London and the Thames Valley region. Since 2006, the company has grown its Regulated Capital Value (RCV) by 5.2% annually through its capital investment program that will see an additional C$7.5 billion (£4.6 billion) invested between 2015 and 2020, the most in the UK water industry.
"This transaction represents an opportunity to strengthen our long-standing relationship with Thames Water and enhance the quality and return profile of our globally diversified portfolio," said Fiera Infrastructure President, Alina Osorio. "It is our intention to continue to add high quality long-term investments which offer essential services across a variety of geographies to our infrastructure portfolio, and provide our investors with direct co-investment opportunities."
"Desjardins is proud to acquire an equity interest in Thames Water, which provides diversification and stable cash flows that perfectly align with the long term investment objectives of our infrastructure portfolio. We are also pleased to extend our enduring relationship with Fiera Capital and to partner with Fiera Infrastructure in this high-quality investment outside North America," added Frédéric Angers, Head of Infrastructure at Desjardins.
"Fiera Capital, through its affiliate, Fiera Infrastructure, is consistently looking to offer its clients the best investment opportunities possible. The mature regulated utility sector in the UK is well positioned to offer stable long-term returns and valuable diversification to clients’ portfolios" said Fiera Capital Global Chief Financial Officer and Head of Private Alternative Investments, John Valentini.
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