Utilities Trust of Australia (UTA) has taken up its pre-empt rights to acquire OTPP’s 60% stake in the Sydney Desalination Plant, two sources said.

La Caisse (formerly CDPQ) raised about AUD 500m (USD 322m) in debt ahead of a potential deal. John Laing was also a bidder, two additional sources said.

La Caisse will keep the facility on hand for future core infrastructure acquisitions, including for brownfield public private partnerships (PPPs), said one of the sources.

Infralogic reported on 13 October La Caisse had approached banks for AUD 400m in holding company debt and a separate acquisition facility of around AUD 400m.

UTA, managed by Morrison, holds a 40% stake in the facility.

Barrenjoey is advising OTPP on the sale, while Macquarie Capital is advising UTA and Morrison.

Dutch pension fund APG and Singapore’s GIC were reported to be bidders in early October, although a fifth source close told Infralogic that APG did not bid.

Sales flyers went out in July and offers were called over August and September, according to local media. OTPP is likely to price the asset at an enterprise value of between AUD 2.5bn and AUD 3bn with earnings before interest, tax, depreciation and amortisation (EBITDA) averaging AUD 680m historically.

Sydney Desalination Plant was privatised by the New South Wales government in 2012.

It refinanced an AUD 317.5m term loan and AUD 50m working capital loan in October 2024.

Veolia Water Australia takes care of the Sydney Desalination Plant’s operations and maintenance, according to its website.

For several years, the New South Wales government has been considering whether to allow a multibillion dollar doubling of the plant’s capacity.

Morrison, La Caisse, OTPP and Barrenjoey declined to comment.