The Global Strategic Investment Alliance (GSIA) is announcing its first investment with the successful syndication of approximately a one-third stake in Midland Cogeneration Venture (MCV) from Borealis Infrastructure.
"We're very pleased to have completed our first transaction with our GSIA partners, and look forward to announcing our next acquisition in the near future," said Jacques Demers, President and CEO of OMERS Strategic Investments.
The GSIA currently includes OMERS, one of Canada's largest pension plans, Japan's Pension Fund Association (PFA) and a consortium led by Mitsubishi Corporation (MC). It is expected that membership in the GSIA will continue to expand.
MCV is the largest natural gas fired, combined cycle cogeneration plant in the United States. It was acquired by Borealis Infrastructure, which invests in and manages infrastructure assets on behalf of OMERS, in December 2012. Borealis Infrastructure will manage MCV on behalf of all GSIA investors, and OMERS will continue to own the remaining two-thirds interest in the asset.
"MCV is an excellent facility and we are confident that together with the company’s strong management team, we will continue to deliver sustainable, long-term value for all stakeholders," said Michael Rolland, Borealis Infrastructure President and CEO.
The GSIA announced its US$7.5 billion first close in April 2012. Its goal is for like-minded, longterm global institutional investors to work together in pursuit of attractive, large-scale infrastructure assets mainly in North America and Europe.
"MCV is an excellent asset that we have been able to access through our participation in the GSIA. Through the alliance, we are able to benefit from the expertise of Borealis Infrastructure and OMERS, making investments that will deliver long-term stable returns to pension plans and institutional investors," said Yuichi Hiromoto, Senior Vice President, Mitsubishi Corporation.
Borealis Infrastructure will originate and manage all GSIA assets. Administrative support services to the GSIA investment program are provided by Rosewater Global, an OMERS affiliate. The MCV syndication is subject to third party approvals.