A consortium led by Allianz Capital Partners is to take full control of UK water supply company Affinity Water.
The consortium of Allianz Capital Partners 鈥� on behalf of the Allianz Group (36.6%), DIF (26.9%), and HICL, managed by InfraRed Capital Partners (36.6%) 鈥� will take control of Affinity later this month.
Infracapital and Morgan Stanley Infrastructure are selling the interest.
The consortium will pay 拢687m (鈧�813m) for a 90% stake, while the remaining 10% will be sold by Veolia Water UK.
鈥淭he UK water sector offers a well-established and transparent regulatory framework that provides Allianz good visibility and a fair return on its investment,鈥� said Christian Fingerle, chief investment officer at Allianz Capital Partners.
鈥淭he investment in Affinity Water is another important step in our ambition to grow our portfolio of high-quality core infrastructure assets and it reaffirms our comfort with the UK as a stable jurisdiction in which to invest capital.鈥�
Fingerle said the investment would deliver inflation-linked, stable and predictable cash-flows, 鈥渨hich are ideal for matching long-term payment obligations to the customers in Allianz鈥檚 core business of insurance鈥�.
Affinity Water is the UK鈥檚 largest water-only supply company by revenue and population served.
