Fiera Infrastructure has acquired Suncor Energy's 50 per cent interest in the Cedar Point II Limited Partnership, owner of the 100 megawatt (MW) Cedar Point II wind facility.
Cedar Point II, located in Forest Hill, Ontario, consists of 46 wind turbines located on privately owned lands under long-term leases, is co-owned with affiliates of NextEra Energy Canada and has been operating since October 2015.
It benefits from a 20-year power purchase agreement with the Independent Electricity System Operator (IESO), formerly Ontario Power Authority, whereby 100 per cent of the output is sold to the ISEO in exchange for a fixed electricity rate.
"This transaction is an exciting opportunity that enhances the quality and return profile of our portfolio for the benefit of our investors and represents an opportunity to establish an important relationship with NextEra Energy Canada," says Fiera Infrastructure president Alina Osorio. "Our aim is to secure high-quality core assets which provide investors with access to income-generating infrastructure assets. Through this acquisition, we will confirm Fiera Infrastructure's position as a leading infrastructure investment firm that has the full capabilities to execute on highly attractive and sought-after opportunities."
"As a leader in the alternative investment industry, Fiera Capital, through its affiliate, Fiera Infrastructure, is always looking to offer its clients the best investment opportunities and the Firm continues to see the infrastructure asset class as a market segment which offers superior growth potential and diversification to clients' portfolios," says Fiera Capital global chief financial officer and head of private alternative investments, John Valentini. "With this transaction, Fiera Infrastructure gains yet another high quality asset and continues on its path to strengthen Fiera Capital's overall private alternative investment offering."
National Bank Financial Markets acted as financial adviser and debt adviser and arranger to Fiera Infrastructure.