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Alternative asset manager HMC Capital (ASX: HMC), which is chaired by former Prime Minister Julia Gillard, is acquiring the Victorian portfolio of French renewable energy company Neoen for $950 million in a deal that HMC says prices the assets below replacement cost.
The Sydney-based HMC Capital, which is armed with about $550 million in senior debt, plans to settle the deal in two tranches with $750 million payable on settlement in July next year and the balance to be paid in December 2025.
Neoen’s Victorian portfolio will be among the seed assets for HMC’s Energy Transition Platform, fundraising for which is on track for its first close in the first half of next year, or just ahead of settlement of the deal.
The Neoen portfolio comprises four operating assets with a capacity of 652 megawatts and six development assets with total capacity of more than 2,800 megawatts. It is part of a national portfolio totalling 3.75 gigawatts that makes Neoen Australia’s largest renewable energy investor.
Once completed, the acquisition will position HMC Capital among the top 10 providers of renewable generation and storage in the National Energy Market.
“Our move into the energy transition sector reflects the significant level of investment required both in Australia and globally to achieve decarbonisation targets,” says HMC Capital’s CEO David Di Pilla.
“We have received a significant level of interest from domestic superannuation funds to be foundation investors in HMC’s Energy Transition platform who are attracted to both long-term transition fundamentals and HMC’s capability.”
The Neoen portfolio acquisition will boost HMC Capital’s assets under management to $19 billion, putting the investment group on track to beat its $20 billion target in FY25.
Gillard describes the agreement as a significant step for HMC in its ambition to be “a national champion of Australia’s transition to a net zero carbon economy by 2050”.
“This is a marquee acquisition to further seed HMC’s Energy Transition platform, encompassing a diversified range of renewable energy generation and storage assets,” she says.
“We look forward to partnering with some of Australia’s leading institutional investors in creating a clean energy future and fighting against climate change.”
The Neoen portfolio joins HMC’s seed asset investment in Stor Energy, which has a portfolio of six utility-scale battery energy storage system development assets with total capacity of 1.5 gigawatts.
HMC says its Energy Transition Fund’s initial capital raising of up to $2 billion is well advanced, securing several institutional cornerstone investors from its first close due in the first half of next year.
The Paris-headquartered Neoen earlier this year secured $1.1 billion in debt financing for its renewable energy portfolio in Australia which comprises eight wind, solar and battery storage assets.
The assets comprise seven wind and solar operating assets in South Australia, NSW, Queensland and Victoria, as well as the first stage of the Collie Battery project currently under construction in Western Australia.
Neoen is currently the largest renewable energy company in Australia with 3.75 gigawatts of assets either under construction or in operation.
Prior to the sale announcement today, the French company had ambitions for its Australian portfolio to reach a combined 10 gigawatts in operation or under construction by 2030.
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