- PATRIZIA MBK Fund Management, a joint venture between PATRIZIA and Mitsui & Co., LTD (Mitsui), has completed the first investment for the APAC Sustainable Infrastructure Fund (A-SIF)
- Initial investment of AUD 70 million comprises an equity stake in YES Group as well as the funding of a diversified solar and battery energy storage development portfolio across regional Australia
- The investment has the potential to deliver total renewable generation capacity of over 150MW once fully developed, supporting Australia’s transition to green energy
- With a target size of up to USD 1 billion in Assets Under Management, A-SIF is investing in the energy, digital, social and mobility sectors across key developed markets in APAC
Sydney, Augsburg 9 October 2023. PATRIZIA, a leading partner for global real assets, and Mitsui, one of the largest trading and investment companies in the world, have committed to invest up to AUD 70 million in a major solar and battery development programme in Australia through the APAC Sustainable Infrastructure Fund (A-SIF). The deal marks the debut investment for A-SIF, which is a joint venture between PATRIZIA and Mitsui.
The investment comprises an equity interest in YES Group, a leading energy solutions provider, together with a commitment to fund the development of a portfolio of predominantly small-scale solar PV generation and battery energy storage solutions throughout regional Australia. The portfolio will have the potential to deliver over 150MW of capacity once fully operational. It is expected that a 150MW renewables portfolio will offset over 335,000 tonnes of CO2 each year (compared to coal fired energy) and provide sustainable, green power to approximately 65,000 households.
The strategic decision to focus on a portfolio of small-scale generation assets will ensure diversification across the distribution network, shorter and predictable construction times, less transmission losses, less regulatory risk and the advantage of being able to spread assets geographically to target sites with higher solar irradiance.
The development locations in rural Australia will help unlock value in under-utilised or redundant land for the community and generate local and skilled employment opportunities throughout a circa 30-year lifecycle. The investment in batteries, both integrated with solar as well as standalone, will provide additional support for the grid during Australia’s period of energy transition.
The investment in YES Group will ensure the strategy is implemented by an experienced and established operational team. Founded over 15 years ago, YES Group is a licenced, vertically integrated energy solutions provider, covering energy markets services and retailing, project origination and EPC, high voltage services and asset management. The company has successfully installed over 1,700 rooftop solar systems (sub 1MW), over 120 ground mount solar farms (sub 5MW) and works on major infrastructure projects across the national electricity network. PATRIZIA and YES Group have worked together since September 2020, delivering over 60MW of approved projects with a further pipeline of over 70MW identified, in addition to the target of over 150MW through A-SIF.
Saji Anantakrishnan, Head of Infrastructure for Australia and Asia at PATRIZIA, said: “Decarbonisation and climate change are two core megatrends that underpin our global investment philosophy at PATRIZIA. As a thoughtful and strategic investor for our clients, this first deal for A-SIF demonstrates our strong conviction to energy transition and the attractive long-term returns renewables can generate for our institutional investors. Our vision in APAC for both PATRIZIA’s real assets platform and our flagship mid-market fund is to collaborate with like-minded investors and regional partners to build a portfolio of infrastructure assets that deliver positive sustainable outcomes.”
PATRIZIA completes the deal as global investment in solar energy is expected to outstrip oil production for the first time ever, with total spend on solar power forecast to hit USD 382 billion this year according to the International Energy Agency. This strong investor interest in renewables is reflected in PATRIZIA’s 2023 client survey, in which 55% of its international institutional investors said they planned to increase the share of renewables in their portfolios over the next five years.
A-SIF is the second fund from the PATRIZIA-Mitsui collaboration, following the launch of the Emerging Market Infrastructure Fund (EMIF) in 2008, which also had a focus on APAC. The PATRIZIA-Mitsui partnership brings together two of the most experienced investors in global real assets. With a 39-year track-record, PATRIZIA manages around EUR 58billion AUM globally for its clients, of which EUR 10 billion is for institutional investors who are located in Asia-Pacific. Mitsui is a global trading and investment company with a presence in more than 60 countries and a diverse business portfolio covering a wide range of industries. The company identifies, develops, and grows its businesses in partnership with a global network of trusted partners including world leading companies, combining its geographic and cross-industry strengths to create long-term sustainable value for its stakeholders.
PATRIZIA: A leading partner for global real assets
With operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 39 years. PATRIZIA manages around EUR 58 billion in assets and employs over 1,000 professionals at 28 locations worldwide. PATRIZIA has been making an impact since 1984 by helping children in need, since 1992 in close collaboration with Bunter Kreis (“colourful circle”) in Germany for aftercare of children with severe diseases and since 1999 through its support for the PATRIZIA Foundation. The PATRIZIA Foundation has given more than 600.000 children and young people worldwide access to education, healthcare, and a safe home to get the chance to live a better self-determined life over the last 24 years. You can find further information at www.patrizia.ag and www.patrizia.foundation.
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