IFM, Ontario Teachers acquire district energy firm

IFM Investors and Ontario Teachers' Pension Plan Board have agreed a deal to buy the Canadian district energy operations owned by Enwave Energy.

Under the C$2.8bn agreement, the two investors will acquire a 100% interest in the operations from Brookfield Infrastructure.

The Enwave brand will be retained as part of the transaction, while IFM and Ontario Teachers will each own 50% of the company.

Enwave is a district energy business that provides sustainable district cooling and heating solutions to over 320 customers across a range of sectors in Canada, spanning Toronto, London, Windsor and Charlottetown.

District heating and energy facilities are becoming of increasing interest to public sector authorities as they develop regeneration and housing projects that can also reduce carbon emissions.

“Enwave is a prime example of an investment that we believe can be both commercially attractive and contribute to broader sustainability efforts,” said Dale Burgess, senior managing director for infrastructure & natural resources at Ontario Teachers.

Concurrently, QIC and Ullico have agreed to acquire 100% of Enwave’s US business. Mayer Brown was counsel to Brookfield on the transaction.

Financial close on the transaction is expected to take place in mid-2021.