Utilities Trust of Australia (UTA), managed by infrastructure manager Morrison, has acquired the 60% stake in the Sydney Desalination Plant (SDP) previously held by Ontario Teachers' Pension Plan (Ontario Teachers’). The transaction gives UTA full ownership of the asset, following its existing 40% interest. The additional shares were acquired through UTA’s pre-emptive rights over Ontario Teachers’ stake.
The Sydney Desalination Plant is a major source of rainfall-independent drinking water for Greater Sydney. The facility is powered entirely by renewable energy and operates year-round, with a production capacity of up to approximately 250 million litres per day. This represents around 15% of Sydney’s daily drinking water needs. The plant supports water security as climate variability increases the frequency of extreme weather events and population growth continues to drive demand.
During the period of joint ownership between Ontario Teachers’ and UTA, the plant transitioned from government to private ownership. Other developments included a major rebuild following a tornado in 2015, recommissioning and restart of production in 2019 after an extended shutdown, and a shift to flexible full-time operations.
The Sydney Desalination Plant is a major source of rainfall-independent drinking water for Greater Sydney
Gordon Hay, Partner at Morrison, said: "SDP is an important asset for Sydney, delivering vital water security in a changing climate. Having been invested in the plant since 2012, UTA is well positioned to continue supporting Sydney's evolving water security needs. This transaction reinforces UTA's long-term commitment, backed by strong liquidity and supportive investors."
Jan Brand, Managing Director, Infrastructure & Natural Resources at Ontario Teachers' Pension Plan, said: "Sydney Desalination Plant has been a great investment for Ontario Teachers', and our more than a decade-long ownership reflects our commitment to being responsible, long-term stewards of essential infrastructure. We have worked closely with our partners to support the success and resilience of the asset, ensuring it continues to deliver reliable water security for the community it serves. We are proud of what has been achieved and wish the SDP and UTA teams continued success in this next chapter."
Philip Narezzi, CEO at Sydney Desalination Plant, said: "UTA has been a significant investor in SDP for many years, and we are pleased this acquisition will provide continuity for our people and customers. SDP will continue to operate as usual. With ongoing support from a foundation owner, we are well placed to continue providing high-quality drinking water, enhancing Greater Sydney's system resilience."
