IFM strengthens its position in Poland with closing of SPEC SA privatisation

By Industry Funds Management - 12 October 2011


Following our announcement in July, IFM is pleased to announce that Dalkia Polska has acquired an 85% stake from the City of Warsaw in Przedsiębiorstwo Stołeczne Energetyki Cieplnej (SPEC SA). This follows final approval by the City Council of the City of Warsaw and the European Commission. SPEC SA is the largest district heating network in the European Union.

The privatisation increases IFM’s investment in the regulated district heating sector in Poland, providing IFM’s investors access to a leading energy asset in an economy with strong fundamentals.

Dalkia Polska is the pre-eminent district heating provider in Poland with a 25% market share in the Polish district heating sector, up from 11% prior to the privatisation. Dalkia Polska intends to invest in modernising the existing network as well as developing new connections in cooperation with the City of Warsaw.

This investment complements our existing portfolio and strategy of responsibly acquiring core, operating infrastructure investments for the long term across Europe and North America. With a forecast of increasing demand for district heating in Poland, the investment presents significant upside potential for our investors.