Rest, one of Australia’s largest profit-to-member superannuation funds, says recent agreements negotiated by its wholly owned Collgar Renewables business show the power of long-term active stewardship to guide the transformation of assets and unlock new value for members.
Collgar Renewables last month announced it had finalised a refinancing package for the Collgar Wind Farm in Western Australia with ANZ, Commonwealth Bank, Credit Agricole and HSBC.
The refinancing follows Collgar Renewables’ announcement in April of a long-term Power Purchase Agreement with Newmont Corporation through its subsidiary Newmont AP Power Pty Ltd. Under the agreement, Newmont will purchase 100% of Collgar Wind Farm’s electricity and green credits for its Boddington gold and copper mine from 2027 to 2042.
Rest Head of Private Markets and Deputy Chief Investment Officer, Simon Esposito, says these agreements will continue Collgar Renewables’ positive contribution to its members’ retirement savings by providing long-term financial security and generating a stable income stream.
“We have been invested in this project since it first generated electricity in 2011 and, in 2019, we took a 100% stake, becoming one of the first super funds to wholly own a wind farm in Australia,” says Mr Esposito.
“Collgar has been a consistently strong contributor within our portfolio in that time, generating real value and enhancing our members’ financial interests. As an active owner, we have overseen and supported the project’s growth and transformation into Collgar Renewables.
“These new agreements are the latest stage of this evolution. They allow our members to continue to enjoy the financial benefits of WA’s largest wind farm by capacity, as well as its contribution to the decarbonisation of the Australian economy.”
Mr Esposito says Rest’s experience as a direct owner of Collgar Renewables has given it valuable expertise in the renewable energy sector, helping the fund identify further investment opportunities in the sector.
“And as the asset has evolved, our role as an owner has evolved. We are interested in all the ways Collgar makes a return,” says Mr Esposito.
“Most of our members will not retire for many decades – around 1.5 million of our members are likely to retire in a post-2050 world. We think deeply about the world they’ll retire into.
“Active ownership, such as the approach we take with Collgar, gives us real ability to influence more sustainable outcomes in support of our members’ financial interests.”
