La Caisse de dépôt et placement du Québec (CDPQ) has joined an Abu Dhabi Investment Authority subsidiary in a AUD10.25bn (€6.9bn) Australian energy deal.

The Canadian pension fund manager and sovereign wealth fund, along with Wren House Infrastructure Management, bought the 99-year lease on TransGrid, which runs the State of New South Wales’s electricity network.

CDPQ will hold 24.99% of the equity – worth around AUD1.2bn – in the consortium.

The amount of the ADIA’s investment are unknown.

The Middle-Eastern investor invested in the consortium through its Tawreed Investments subsidiary.

Australian investors Spark Infrastructure and Hastings Funds Management have also joined the consortium.

Macky Tall, senior vice-president of infrastructure at CDPQ, which recently opened its Sydney subsidiary, said: “The acquisition of the TransGrid lease is in line with our strategy to invest in high-quality assets, alongside local partners with sophisticated knowledge of the market and vast operational expertise.

“Through this transaction, we continue to diversify our assets globally.�

Tall said TransGrid’s regulated revenues will generate stable and predictable returns for its clients over the long term. 

The network spans close to 13,000km and serves Sydney and Canberra.