The Australian multinational asset management company Macquarie to buy £1 billion stake in Southern Water.
This major investment programme is equivalent to approximately £1,000 for each property in Southern Water’s catchment area and will allow Southern Water to access the resources it needs to improve its operational and financial performance, financial resilience, and relationship with its customers.
The capital investment from Macquarie will enable Southern Water to invest significantly to upgrade its network with £2 billion to be invested over the next four years of the current regulatory period to fix the pipes, pumping stations, and sewers which are underperforming and causing harm to the local environment.
Leigh Harrison, Head of Macquarie Infrastructure and Real Assets, said:
“Southern Water needs significant investment to improve its operational and environmental performance, and financial health. Without it, the business will be unable to fulfil the expectations of the millions of customers that rely on its services each day or reduce its negative impact on the local environment.
“This major £1 billion equity investment by one of our long-term infrastructure funds will help put Southern Water back on a stable footing and enable an ambitious multi-year transformation plan to make essential water and wastewater services in the South East of England more sustainable and resilient.
The Chair of Southern Water, Keith Lough, said:
“We wholeheartedly welcome Macquarie Asset Management’s investors as long-term shareholders of our business. A £1 billion equity investment in Southern Water and its group strengthens our balance sheet to enable Southern Water to increase investment in our network and accelerate the transformation plans we have put in place.”
