New York City, January 17, 2020 A consortium of equity investors including APG, MEAG (Munich Re’s asset manager acting for investors from within Munich Re Group), and Clal Insurance Company, alongside other US institutional investors have agreed to acquire 100% of Astoria Energy I and a 55% interest in Astoria Energy II. Located in Queens, New York, the facilities total 1.2 GW of combined-cycle generation. The plants are expected to provide reliable and required power as New York transforms its energy sector in the decades to come.
The assets are two of the most efficient natural gas plants in New York City. Astoria I provides merchant energy and capacity into the New York power market, while Astoria Energy II operates under a long-term tolling agreement with the New York Power Authority through mid-2031. The transaction is subject to regulatory approval and is expected to close in the first half of 2020.
Steven Hason, Head of Americas Real Estate & Infrastructure at APG said, "As a pension investor, we are continuously looking for attractive infrastructure investments that help us realize stable and long-term returns for our pension clients. This transaction represents an opportunity to invest in facilities that provide reliable baseload electricity to New York City and will provide system stability through New York’s energy transition. We look forward to working with our partners who share our long-term investment goals with regard to this critical infrastructure asset."
Holger Kerzel, Member of the Board of Management at MEAG, stated, "We are keen to invest in the United States, given the large US share of Munich Re’s insurance portfolio. Electricity supply for New York City is an attractive investment opportunity for Munich Re, given the moderate risks and stable and sustainable returns. The high level of long-term income stability will cover the liabilities in the insurance business of our clients. We are pleased to have teamed up with professional partners in this investment project to form a successful long-term relationship."
Yossi Dory, Clal’s Chief Investment Officer, said, "We are proud to invest alongside reputable investors such as APG and MEAG in long-term, high-quality assets with a proven track record and excellent performance. The Astoria projects, which are the backbone of the New York City electric power system, will create long-term, sustainable returns for our pension, provident, and insurance members."
Holland & Knight and Sidley Austin LLP acted as legal counsel to the equity consortium.