News

Consortium Announces Investment in Thames Water

March 14, 2017

LONDON -- Borealis Infrastructure ("Borealis"), the infrastructure investment manager of OMERS, and Wren House Infrastructure Management Limited ("Wren House"), the infrastructure investing arm of the Kuwait Investment Authority, (each a "Consortium Member" and collectively the "Consortium"), are pleased to announce that they have agreed to acquire a 26% stake in Kemble Water Holdings Limited ("Kemble"), the ultimate holding company of Thames Water Utilities Limited ("Thames Water"), from Macquarie Infrastructure & Real Assets ("MIRA").

The Consortium consists of international infrastructure investors with proven track records of investing in UK infrastructure, which will bring significant financial and operational expertise to Thames Water. Financial details of the transaction have not been disclosed.

Thames Water (the "Company") is regulated under the Water Industry Act 1991 and is owned by Kemble. Other large shareholders in Kemble include pension funds and other long-term investors from the UK and around the world.

Thames Water is the UK's largest water and wastewater services provider serving 15 million customers across London, the Thames Valley and surrounding areas. The Company supplies 2.6 billion litres of drinking water per day, and treats 4.4 billion litres of wastewater per day. Thames Water is regulated by Ofwat, the Environment Agency and the Drinking Water Inspectorate.

Borealis and Wren House are committed to the responsible, long-term ownership and development of Thames Water. Each Consortium Member's primary focus is to support management's goal to continue to deliver a high quality customer experience and value for money both now and in the future. The Consortium has met with Thames Water's existing management team and we look forward to working closely with them to pursue this goal. The Consortium will support Thames Water’s ongoing £4.5 billion capital investment programme - for the 2015 to 2020 regulatory period - the largest in the UK water industry.

The Consortium Members have proven experience as trusted long-term investors in critical UK infrastructure, as evidenced by Members' current investments in London City Airport, Associated British Ports, SGN, Belfast International Airport and High Speed 1.

Outside the UK, the Consortium Members have additional significant experience as investors in major regulated utilities in Canada, the USA, Australia, Spain, Sweden, Finland and Czechia. They have a strong track record of investing in and growing excellent businesses, maintaining good relationships with customers, staff, management, regulators and other stakeholders.

Ralph Berg, Executive Vice President & Global Head of Infrastructure, OMERS Private Markets, said: "Thames Water is the UK's largest water company, a crucial provider of public utility services to almost a quarter of the UK’s total population. The geographical area the Company serves is amongst the most densely populated and economically vibrant in Europe and Thames Water's commitment to deliver high quality customer service and value for money will receive our full support."

A spokesperson for Wren House, said: "Our investment will form a core part of our growing UK investment portfolio and will support the Company's improving performance trajectory over the past few years. In addition, our long term investment horizon allows us to support Ofwat’s ambition to drive customer service, resilience, affordable bills and innovation in the industry. We look forward to working closely with Thames Water’s management team in achieving these objectives."

Sir Peter Mason KBE, Chairman of Thames Water, said: "We welcome Borealis and Wren House on board as new investors in Thames Water and look forward to working with them in pursuit of our mission to provide the essential service that’s at the heart of daily life, health and enjoyment."

Contacts

Maitland
James Devas
T: +44 20 7379 5151
jdevas@maitland.co.uk

ABOUT THE CONSORTIUM

The Consortium brings together highly reputable international infrastructure investors.

OMERS Private Markets ("OPM")

OPM (Borealis and OMERS Private Equity) invests globally in infrastructure and private equity assets on behalf of OMERS, the pension plan for Ontario’s municipal employees.

Investments are aimed at steady returns to help deliver strong and sustainable pensions to OMERS members. OPM's diversified portfolio of large-scale infrastructure assets exhibits stability and strong cash flows, in sectors including energy, transportation and government-regulated services. OPM has offices in Toronto, New York, London and Sydney. OMERS is one of Canada's largest pension funds with net assets of more than C$85 billion.

Wren House

Wren House was set up in 2013 as the global direct infrastructure investment vehicle of the Kuwait Investment Authority ("KIA"), with an initial commitment of US$5 billion. The KIA is the oldest and one of the largest sovereign wealth funds in the world. Wren House manages a global investment portfolio diversified across sectors in both energy and transport infrastructure with the objective of generating long term stable financial returns. Wren House has the responsibility to build partnerships with like-minded long term infrastructure investors and prudently source and execute transactions, and manage investments.