African Infrastructure Investment Managers (AIIM) completes the exit of its flagship pan-African infrastructure fund’s (AIIF2) interests in South African renewable energy projects
Cape Town and London, 5 May 2020: African Infrastructure Investment Managers (AIIM), one of Africa’s largest and most experienced infrastructure-focused private equity fund managers, announces the successful divestment of AIIF2’s 14% stake in Cookhouse, a 139MW wind farm, and 34% stake in REISA, a 75MW solar PV facility. The exits are concluded through sales to AIIM’s IDEAS managed Fund, one of the largest equity investors in South African renewables with more than USD500 million invested in the sector.
Based in South Africa’s Eastern and Northern Cape respectively, Cookhouse and REISA reached financial close in 2012 as part of the round one bidding window of South Africa’s Renewable Energy IPP Procurement (REIPPP) programme, which has gone on to raise in excess of USD10.6bn of private funding for South Africa’s renewable generation capacity. These were the largest wind and solar PV projects completed in the first bidding round and, until last year, Cookhouse was the largest operational windfarm in sub-Saharan Africa.
Since commencing operations in 2014, Cookhouse has generated an average of 327GwH of clean power per year – saving 315k tCO2e and providing enough electricity to power 104,000 households. REISA has generated an average of 181GwH of clean power per year over the last five years of operations – saving 179k tCO2e and providing enough electricity to power 57,000 households.
Commenting on the exit, Paul Frankish, Investment Director at AIIM, said: “We are immensely proud to have played a role in these projects and believe the above-target returns achieved support our strategy of investing in first mover projects where we are able to take advantage of our experience across similar projects in the region. The exits mark a long involvement in these projects for AIIM, starting at the inception of the renewables market in South Africa. Through its holding period, the AIIM team led the project through a challenging construction period, oversaw the renegotiation of Operation and Maintenance agreements and established community trust and operations structures which have been used as a blueprint for the industry and resulted in long term investment in the projects’ host communities.”
Investment Director and IDEAS portfolio manager, Vuyo Ntoi added: “IDEAS is a co-shareholder in both Cookhouse and REISA and has been a significant investor in both projects since financial close. With around USD1bn in assets under management, IDEAS is also one of the leading investors in the South African REIPPP program and holds interests in 27 projects across rounds 1 to 4 of the program. This deal aligns well with our strategy of investing in infrastructure projects that are vital for economic growth, produce tangible social and environmental benefits, and are capable of delivering strong long-term returns to investors. We’re very much looking forward to continuing the great work of our AIIM colleagues in supporting Cookhouse and REISA in providing the country with clean, renewable energy.”
AIIM, a member of Old Mutual Alternative Investments, has been investing in the African infrastructure sector since 2000 with a track record extending across seven African infrastructure funds. AIIM currently manages USD1.9billion in assets across the power, telecommunications and transport sectors with operations in 19 countries across East, West and Southern Africa.
As a leading infrastructure manager across Africa, central to AIIM’s investment objectives and processes is its commitment to responsible investments. AIIM is committed to fulfilling fiduciary duties as the custodian of shareholders’ and beneficiaries’ long-term interests. In this regard, AIIM considers the incorporation of environmental, social and governance (ESG) factors into its investment and ownership processes to support the pursuit of creation of positive futures and obtaining sustainable, superior risk-adjusted returns for its clients.
AIIM’s investment team consists of 41 investment professionals across the financial structuring, technical, asset management and ESG capabilities. The team are based out of 5 offices in Cape Town, Johannesburg, Nairobi, Lagos and Abidjan.
Anna McShane, Gong Communications
E: email@example.com M: +44 7766 256 538