Ares Management and Starwood Energy to Sell 660 MW Electric Transmission Line to Argo Infrastructure Partners
September 18 2018 - 5:00PM
Business Wire
Ares EIF, the power and infrastructure strategy at Ares
Management, L.P. (NYSE: ARES), and Starwood Energy Group Global,
LLC, a leading private investment firm focused on energy
infrastructure, announced today that they have signed an agreement
to sell their respective interests in Hudson Transmission Partners,
LLC (“HTP”) to an investment vehicle managed by Argo Infrastructure
Partners, LLC. Financial details were not disclosed. A subsidiary
of PowerBridge, LLC of Fairfield, CT, the developer of the project,
will continue to operate and maintain the asset on behalf of Argo
Infrastructure and other stakeholders. The transaction is
subject to customary regulatory approvals and is expected to close
later in 2018 or in early 2019.
HTP is a joint venture formed solely to develop, construct,
operate and maintain the Hudson Transmission Project, a 660 MW High
Voltage Direct Current electric transmission system connecting the
PSEG-North zone of the PJM Interconnection to the New York
Independent System Operator Zone J power market via a subsea cable
beneath the Hudson River.
The line runs approximately 7.1 miles from a converter station
in Ridgefield, NJ to a substation located at W. 49th Street in New
York City. Approximately 87%, or 575 MW, of the project’s capacity
is contracted with the New York Power Authority through a long-term
capacity purchase agreement through June 2033. Construction of the
project began in May 2011, with a commercial operations date
achieved in June 2013.
“HTP is a prime illustration of Ares’ investment strategy to
develop a core energy infrastructure asset in a premium location
with significant barriers to entry, and create value for our
limited partners,” said Andrew Schroeder, Partner with Ares EIF.
“The constrained NYC-PJM market dynamics coupled with high quality,
long-term contracted cash flows led to a robust and efficient sales
process.”
“Starwood is proud to have been involved in taking this project
from the concept stage to being one of the marquee transmission
assets in the U.S.,” said Himanshu Saxena, CEO of Starwood
Energy. “We are pleased to be transitioning ownership to Argo,
given their unique experience and capabilities in this
sub-sector.”
Norton Rose Fulbright US LLP served as legal counsel to Ares EIF
and Starwood; Bracewell LLP acted as Argo’s legal counsel.
Goldman Sachs & Co. LLC and PJ Solomon served as financial
advisors to Ares EIF and Starwood.
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global
alternative asset manager with approximately $121.4 billion of
assets under management as of June 30, 2018 and 18 offices in the
United States, Europe, Asia and Australia. Since its inception in
1997, Ares has adhered to a disciplined investment philosophy that
focuses on delivering strong risk-adjusted investment returns
throughout market cycles. Ares believes each of its three distinct
but complementary investment groups in Credit, Private Equity and
Real Estate is a market leader based on assets under management and
investment performance. Ares was built upon the fundamental
principle that each group benefits from being part of the greater
whole. For more information, visit www.aresmgmt.com.
Ares EIF is the power and infrastructure strategy within Ares’
Private Equity Group, with a 31-year track record of investing in
assets and companies in the power generation, transmission and
midstream sectors. Since inception, Ares EIF-managed funds have
made approximately 70 equity investments in nearly 130 different
power and energy infrastructure assets with a combined underlying
enterprise value exceeding $20 billion. During the last 15 years,
Ares EIF has invested in nearly 9,000 MW of greenfield generation
and transmission projects, as well as 200 miles of greenfield
pipeline projects, representing over $11 billion of capital
costs.
About Starwood Energy Group Global, LLC
Starwood Energy Group is a private investment firm based in
Greenwich, CT that specializes in energy infrastructure
investments. Through its general opportunity funds and other
affiliated investment vehicles, Starwood Energy Group has raised
equity commitments of approximately $3 billion and has executed
transactions totaling more than $6 billion in enterprise
value. The Starwood Energy Group team brings extensive
development, construction, operations, acquisition and financing
expertise to its investments, with a focus on the natural gas and
renewable power generation, and transmission sectors. Starwood
Energy Group is an affiliate of Starwood Capital Group Global, L.P.
Additional information about Starwood Energy Group as well as
Starwood Capital Group can be found at
www.starwoodenergygroup.com.
About Argo Infrastructure Partners
Argo Infrastructure Partners is an independent investment
manager with a long-term approach to infrastructure investing. Argo
seeks investments in high-quality physical assets providing
essential services. The firm’s investment group includes a
highly-qualified and experienced team of industry specialists with
over $38 billion of transaction and investment management
experience. Argo provides its investor partners with access to
high-quality infrastructure investment opportunities with effective
alignment of interest and unique transparency. For more
information, please visit www.ArgoIP.com or email
info@ArgoIP.com.
About PowerBridge, LLC
PowerBridge, LLC is a developer, operator, and manager of major
infrastructure facilities, including the Hudson Transmission
Project and the Neptune Regional Transmission System, which provide
a combined total of 1,320 MW of transmission capacity to New York
via undersea and underground cables and associated voltage
conversion equipment. Both of these complex projects were completed
within budget and ahead of schedule under PowerBridge’s direction.
Please visit www.powerbridge.us for more information.
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version on businesswire.com: https://www.businesswire.com/news/home/20180918006107/en/
For Ares Management:Media:Mendel CommunicationsBill Mendel,
212-397-1030bill@mendelcommunications.comorInvestors:Ares
Management, L.P.Carl Drake,
800-340-6597cdrake@aresmgmt.comorPriscila Roney,
212-808-1185proney@aresmgmt.comorFor Starwood
Energy:Media:Abernathy McGregorTom Johnson,
212-371-5999TBJ@abmac.comorInvestors:Starwood Energy Group Global,
LLCOlga Bruce, 203-422-7727obruce@starwood.comorFor Argo
Infrastructure Partners:Media or Investors:info@argoip.comorFor
PowerBridge, LLC:Chris Hocker,
203-416-5590chocker@powerbridge.us
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