Utilities Trust of Australia (UTA) has acquired an additional 60% stake from Ontario Teachers’ Pension Plan (Ontario Teachers’) to take full ownership of the asset
UTA and Ontario Teachers’ have co-owned the asset since 2012
Utilities Trust of Australia (UTA), managed by global infrastructure manager Morrison, has acquired Ontario Teachers’ Pension Plan’s (Ontario Teachers’) 60% stake in the Sydney Desalination Plant (SDP), taking full ownership of the asset. UTA previously owned 40% of SDP and acquired the additional 60% interest through its pre-emptive rights over the Ontario Teachers’ stake.
SDP is a critical asset for Greater Sydney as the City’s only significant rainfall-independent source of drinking water. Powered entirely by renewable energy, the facility operates year-round and has the capacity to produce up to approximately 250 million litres of water per day - around 15% of Sydney’s daily drinking water needs - helping improve Sydney’s water resilience as climate change drives more frequent extreme weather events, such as floods and droughts, and population growth increases demand.
Under Ontario Teachers’ and UTA’s shared ownership, the business has achieved several significant milestones, including transitioning the business from government to private ownership, completing a substantial rebuild of the plant following a 2015 tornado, re-commissioning and restarting of the plant in 2019 following a prolonged period of no production, and transitioning of the plant to flexible full-time operations.
Gordon Hay, Partner at Morrison, said: "SDP is an important asset for Sydney, delivering vital water security in a changing climate. Having been invested in the plant since 2012, UTA is well positioned to continue supporting Sydney's evolving water security needs. This transaction reinforces UTA’s long-term commitment, backed by strong liquidity and supportive investors.”
Jan Brand, Managing Director, Infrastructure & Natural Resources at Ontario Teachers’ Pension Plan, said: “Sydney Desalination Plant has been a great investment for Ontario Teachers’, and our more than a decade-long ownership reflects our commitment to being responsible, long-term stewards of essential infrastructure. We have worked closely with our partners to support the success and resilience of the asset, ensuring it continues to deliver reliable water security for the community it serves. We are proud of what has been achieved and wish the SDP and UTA teams continued success in this next chapter.”
Philip Narezzi, CEO, at Sydney Desalination Plant, said: “UTA has been a significant investor in SDP for many years, and we are pleased this acquisition will provide continuity for our people and customers. SDP will continue to operate as usual. With ongoing support from a foundation owner, we are well placed to continue providing high quality drinking water, enhancing Greater Sydney’s system resilience.”
This transaction follows successful partial divestments of UTA's stakes in Transgrid and Perth Airport to rebalance the portfolio.
