Canadian, Kuwaiti investors buy Macquarie’s stake in Thames Water

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A Canadian investor has joined with a Kuwaiti investor to buy a minority stake in Britian’s Thames Water, ending Macquarie’s 11-year investment in the water business.

Borealis Infrastructure, the infrastructure investment manager of OMERS, and Wren House Infrastructure Management Limited, the infrastructure investing arm of the Kuwait Investment, have formed a consortium to buy into the business.

They are buying a 26 per cent stake in Kemble Water Holdings, the holding company of Thames Water, from Macquarie Infrastructure & Real Assets.

Thames Water is the UK’s largest water and wastewater services provider serving 15 million customers across London, the Thames Valley and surrounding areas.

It supplies 2.6 billion litres of drinking water per day, and treats 4.4 billion litres of wastewater per day.

The consortium said it will support Thames Water’s ongoing £4.5 billion capital investment programme – for the 2015 to 2020 regulatory period – the largest in the UK water industry.

Ralph Berg, executive vice president & global head of infrastructure, OMERS private markets, said: “Thames Water is the UK’s largest water company, a crucial provider of public utility services to almost a quarter of the UK’s total population.

“The geographical area the Company serves is amongst the most densely populated and economically vibrant in Europe and Thames Water’s commitment to deliver high quality customer service and value for money will receive our full support.”

Last year, the private equity arm of Canadian pension giant OMERS agreed to sell V.Group to Advent International.

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