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December 5, 2024: Federation Asset Management, one of Australia’s leading private markets firms, is pleased to announce the sale of its shares in Merredin Energy to Infragreen Group Pty Ltd.
Merredin Energy is an operational 82MW liquid fired generator located in Merredin, Western Australia, connected to the South West Interconnected System (SWIS) participating in the Wholesale Electricity Market (WEM).
Federation acquired its interest in Merredin Energy in August 2022. Federation’s original acquisition thesis was underpinned by its highly de-risked revenue profile and stable operating cost structure, supported by favourable market trends that were expected to create further opportunity.
Merredin has performed well, aligned to the initial investment thesis, delivering steady distributions to date with the value in the site’s optionality becoming visible due to increasing volatility in the Western Australian Electricity Market.
Stephen Panizza, Lead Partner on Infrastructure at Federation said, “We are very pleased to announce the sale of our interests in Merredin Energy. The sale achieves an IRR exceeding our investment target for Federation investors, largely driven by accelerated realisation of the market thesis.
“It is also a clear demonstration of Federation’s ability to enter assets in a disciplined manner and provide exits for our investors.”