Caisse investing in Taiwan wind farm, CPPIB in Indonesian logistics venture

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Wind energy. © Pedro Antonio Salaverría Calahorra / 123rf stock photosThe Caisse de dépôt et placement du Québec and local investor Cathay PE are jointly acquiring a 50 per cent interest in the Greater Changhua 1 Offshore Wind Farm, a 605-megawatt facility in Taiwan.

The majority of the approximately $3.4-billion deal will be used to pay for the engineering, procurement and construction services for the facility, according to a press release.

“This investment in Taiwan, which represents an attractive market for [the Caisse], allows us to further diversify our presence in Asia,” said Emmanuel Jaclot, executive vice-president and head of infrastructure at the Caisse, in the release. “As an investor with vast experience in renewable energy, we seek this kind of greenfield opportunity to contribute to the transition towards a low-carbon economy.”

This is the latest clean energy investment made by the pension fund. Previous investments include Invenergy Renewables, Xebec Adsorption Inc. and Q-Energy Ltd.

In other investment news, the Canada Pension Plan Investment Board is establishing a new Indonesia venture with logistics real estate specialist LOGOS.

The CPPIB will invest US$200 million into the joint venture, which will develop a diversified portfolio of facilities targeted at third-party logistics, data centre and industrial tenants in Jakarta, according to a press release.

“One of the key investment themes for [the CPPIB] has been Asia’s growing middle class and domestic consumption,” said Jimmy Phua, managing director and head of real estate investments in Asia for the CPPIB, in the release. “The growth in Indonesia’s e-commerce market has driven the demand for modern logistics facilities. We’re pleased to be furthering our partnership with LOGOS and strengthening our position in Indonesia’s logistics market.”

This is the second joint venture between the CPPIB and LOGOS in Indonesia, with the first launched in 2017 to acquire logistics properties in this market.

Additionally, the Ontario Teachers Pension Plan is acquiring a 69.4 per cent stake in Società Gasdotti Italia, an Italy-based gas-transmission operator.

The company operates a 1,700-kilometre high pressure pipeline network transporting natural gas to key industrial and urban centres across Italy. The Ontario Teachers’ acquired the stake from Macquarie Infrastructure and Real Assets.

“This investment is in line with our strategy to acquire core, regulated utility assets that provide essential services and have highly-predictable cash flows,” said Dale Burgess, senior managing director for infrastructure and natural resources at the Ontario Teachers’, in the release. “We believe that SGI’s network is well positioned to benefit from and enable the shift to low- or zero-carbon alternatives like green hydrogen and biomethane to support broad decarbonization efforts in Italy and Europe.”

And the Public Sector Pension Investment Board and real estate developer Tishman Speyer Properties are acquiring two more Paris properties.

These include the Carré Saint Germain, a 13,800-square metre mixed-used property, along with the Tour Cristal, a 26,000-square metre office tower. These properties are the latest Paris real estate acquisitions by the PSP, which purchased the Espace Lumière in November.

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