LOS ANGELES--(BUSINESS WIRE)--
Ares Management, L.P. (NYSE:ARES) announced today that a fund managed by
the Ares EIF Group has agreed to sell the Pio Pico Energy Center, a
322-MW simple cycle gas-fired power facility located in Otay Mesa,
California, to institutional investors advised by J.P. Morgan Asset
Management. The buyer was supported by its existing independent power
platform, Southwest Generation. Terms of the transaction were not
announced, and the transaction is subject to certain regulatory
approvals and consents.
Ares EIF developed, financed and constructed Pio Pico, which began
commercial operations in November 2016. The project utilizes
state-of-the-art GE LMS100 technology, which features the leading simple
cycle efficiency in the industry. Pio Pico’s flexible quick-start
capabilities support grid stability and the continued integration of
renewable resources such as wind and solar generation in California. The
capacity and energy generated by the project is provided to San Diego
Gas & Electric under a long-term, 25-year power purchase and tolling
agreement.
"Today’s announcement is a culmination of years of development and
construction efforts and is representative of our firm's commitment to
developing new, reliable and efficient power generation in markets like
California, where there is strong demand for these types of projects,”
said Warren MacGillivray, a Partner in the Ares EIF Group. “We are proud
to have led every phase of this project, from development to financing
to construction to bringing the project into operations where it will be
instrumental in supporting California’s renewable goals.”
“Pio Pico is a unique asset providing long-term cash flow visibility
that complements our growing portfolio of long-term contracted thermal
and renewable generation assets,” said Matt LeBlanc, Chief Investment
Officer, OECD Infrastructure at J.P. Morgan Asset Management.
Since 2002, Ares EIF has invested in more than 8,200 MW of greenfield
generation and transmission construction projects representing nearly
$10 billion of capital costs. Pio Pico is the latest of these facilities
to reach commercial operations, demonstrating Ares EIF’s leading
position as a value-added infrastructure investor. Ares EIF’s other
noteworthy greenfield projects which have been developed, constructed,
operated and subsequently monetized are both Astoria Energy I and II in
New York City, the Neptune Regional Transmission System in NY/NJ, and
the Path 15 Transmission Upgrade in California.
The Ares EIF Group, formerly known as Energy Investors Funds (EIF), was
acquired by Ares in January 2015. Founded in 1987, Ares EIF has a
29-year track record and is one of the first managers focused on the
independent power and electric utility industry. Ares EIF’s investment
strategy is to create geographically and technologically diversified
portfolios of energy infrastructure investments via acquisitions as well
as development and construction across the power generation,
transmission and midstream sectors.
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative
asset manager with approximately $97 billion of assets under management
as of September 30, 2016 and more than 15 offices in the United States,
Europe and Asia. Since its inception in 1997, Ares has adhered to a
disciplined investment philosophy that focuses on delivering strong
risk-adjusted investment returns throughout market cycles. Ares believes
each of its three distinct but complementary investment groups in
Credit, Private Equity and Real Estate is a market leader based on
assets under management and investment performance. Ares was built upon
the fundamental principle that each group benefits from being part of
the greater whole. For more information, visit www.aresmgmt.com.
About J.P. Morgan Asset Management – Global Real Assets
J.P. Morgan Asset Management – Global Real Assets has more than $96
billion in assets under management and more than 400 professionals in 20
offices throughout the Americas, Europe and Asia Pacific, as of
September 30, 2016. With a 45-plus year history of successful investing,
J.P. Morgan Asset Management – Global Real Assets’ broad capabilities
provide many of the world’s most sophisticated investors with a global
platform of real estate, infrastructure and transportation strategies
driven by local investment talent with disciplined investment processes
consistently implemented across asset types and regions. For more
information: jpmorgan.com/institutional/global_real_assets.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161213005455/en/
For Ares Management:
Media:
Mendel Communications
Bill
Mendel, 212-397-1030
[email protected]
or
Investors:
Ares
Management, L.P.
Carl Drake, 800-340-6497
[email protected]
Source: Ares Management, L.P.
