CFSGAM buys French heating assets

Colonial First State Global Asset Management (CFSGAM) has announced its acquisition of French district heating company, Coriance, which has grown its renewable energy production to 60 per cent.

CFSGAM entered into an agreement to buy Coriance from KKR, for an undisclosed amount.

"Coriance operated a portfolio of 29 regulated district heating concessions in France, under which it supplied heat to residential, social and commercial buildings," CFSGAM said.

It also sold cogenerated electricity to the state owned utility, EDF, and also provided energy services to the heating sector, the fund manager added.

Coriance chief executive, Yves Lederer, said: "We have developed our business considerably and have grown renewal energy production as a percentage of our total energy production, from 34 per cent in 2012 to 60 per cent in 2015".

Coriance was well placed to take advantage of increasing heating solutions demands in the renewable energy sector and was looking forward to taking that step with CFSGAM, Lederer said.

CFSGAM infrastructure investments partner, Marcus Ayre, said: "Coriance will become CFSGAM's inaugural infrastructure investment in France. Coriance's position as a leading operator of sustainable, reliable district heating network concessions, with a strong positive environmental dimension is especially attractive to us as a long-term investor".