Palisade launches Intera Renewables

Palisade Investment Partners has announced the launch of the next phase of its renewable energy investment strategy by establishing Intera Renewables.

Palisade, which is an early investor in the clean energy sector, said that Intera would be renewable energy platform, aggregating five of Palisade’s operational renewable energy assets into a single entity of scale, with a common ownership, governance, management and financing structure.

It would focus on “long-term value creation through organic growth”, with particular emphasis on developing and constructing new renewable energy projects.

To establish Intera, Palisade has executed a $1.3 billion single portfolio financing facility secured against the combined pool of Intera assets, replacing existing individually financed asset level debt.

Intera will be owned by Palisade’s Renewable Energy Fund (PREF), Palisade’s Diversified Infrastructure Fund (PDIF), Palisade direct investment clients, HESTA and the Clean Energy Finance Corporation (CEFC), plus Aware Super, who will be a co-investor in Intera.

At the same time, Palisade Integrated Management Services (PIMS) would provide operational management services to Intera.

PREF will have approximately 50% ownership interest in Intera Renewables and has a mandate to invest in both operating and development phase renewables assets in Australia while PDIF will coinvest alongside PREF for an additional ~7% exposure in Intera.

HESTA head of portfolio management, Jeff Brunton, said that as a long-term investor, HESTA was looking to invest more in the transition to a low carbon future, with a target of 10% 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,” he added.

Also, Aware Super Senior Portfolio Manager – Infrastructure, Mark Hector, said the 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 said.

Intera’s seed assets are comprised of Hallett 1 Wind Farm (South Australia), Snowtown 2 Wind Farm (South Australia), Granville Harbour Wind Farm (Tasmania), Macarthur Wind Farm (Victoria) and Ross River Solar Farm (Queensland), for a combined installed capacity (100% basis) of ~1GW, and first 12-months EBITDA of ~$150m per annum on an Intera proportionately owned basis