The cost of the acquistion includes a €490 million (A$792 million) purchase price, as well as the assumption of debt worth about €420 million (A$679 million), according to media reports.

Enersis, previously owned by Portugal-based Semapa, provides 3000MW of power generation in a portfolio of wind farms and hydroelectric plants in Portugal, Spain and France. The company also has small investments in bio-fuel and wave technologies, as well as a development pipeline, B&B said.

The Australian Financial Review reports B&B managing director Phil Green saying the Enersis’ assets would be split up and shared between the firm’s various listed funds, including B&B Infrastructure Group, B&B Wind Partners, and B&B Environmental Investments.

B&B global infrastructure and project finance head, Peter Hofbauer, said the portfolio generated strong operating cash flow and offered growth potential through a development pipeline.

“This acquisition offers Babcock & Brown a unique opportunity to acquire an entity with a mix of assets in sectors where Babcock & Brown has deep industry experience,” Hofbauer said.

“The portfolio contains further projects with an aggregate capacity of approximately 360MW, currently at various stages of licensing, which are expected to be commissioned over the next three years.”

In addition, Hofbauer said Enersis has a significant number of projects at an earlier stage of development.

Meanwhile, the company has also proposed building a 28 million litres per annum bio-diesel project in Portugal.

“The portfolio is spread across markets, which have been strategic targets for Babcock & Brown’s renewable businesses, as they offer strong support to the sector via a mix of fixed price tariffs, government grants and tax incentives,” B&B European infrastructure team head, Antonio Lo Bianco said.

B&B said sales from operating assets have grown from €33.4 million (A$54 million) in 2003 to a forecast €44 million (A$71 million) in 2005.