Arowana’s private credit investment arm has reached agreement with ICAM Duxton STC Holdings Pty Ltd (“ICAM” or “the Borrower”) regarding the early settlement of its secured infrastructure debt facility for the Lucky Bay Port in South Australia. This has enabled co-investors with Arowana to realise a return in excess of the target IRR of 15%.
Lucky Bay provides an alternative grain supply channel for grain growers and other commodity suppliers on the Eyre Peninsula in South Australia. It is run by ICAM Duxton Port Infrastructure Trust (IDPIT) with ICAM as the fund manager and T-Ports as the operator, specialising in innovative logistical solutions for the export of Australian commodities. T-Ports was established by IDPIT in 2018 to initiate construction and project management of the Lucky Bay Port Facility development, with ICAM securing private debt and equity capital. The Lucky Bay Port generates road freight savings for grain growers from the Eyre Peninsula of up to $15 per tonne and 4,600 tonnes of CO2 emission savings annually.
Kevin Chin, Founder and CEO of Arowana, commented, “We are pleased to have had the opportunity to provide financial support for the development and growth of a pioneering and innovative port infrastructure project in Lucky Bay, South Australia. During the process, we were very impressed with how the ICAM and T-Ports management teams relentlessly overcame challenges posed by unexpected weather conditions and the COVID-19 pandemic in particular. As a B Corp as well as being seasoned operators who understand business challenges, we were happy to be a responsible and reasonable lending partner during challenging episodes. We would like to congratulate them on the successful close of their recent equity raising and we will be willing them every success going forward.”
ICAM’s Managing Director, Freddy Bartlett said, “Our team has shared a close working and commercial relationship with the team at Arowana in bringing this greenfields port infrastructure project to operational completion. This combined group has collaborated to work through the hurdles of a new start up infrastructure entity and the recent global challenges posed by COVID. We are extremely appreciative of the continued support from Arowana in helping to bring this South Australian port towards its ultimate growth potential. ”
“This transaction showcases the mutual success that can be achieved through close collaboration, open communication, and a deep understanding of the transaction’s operating and financial conditions and constraints which serve as a crucible for innovation in response to the inevitable challenges that no investment is immune to. It has been a pleasure to work with the ICAM and T Ports management teams “ said Johann Kenny, a senior director at Arowana who oversaw the investment and led the negotiations on the early settlement.
Arowana is a global B Corp certified group that has a number of operating companies and investments, including in electric vehicles, renewable energy, vocational & professional education, technology and software, venture capital and impact asset management. Arowana’s purpose is to grow people, companies and value.
ICAM is an alternative investments fund manager specialising in off-market sourcing, structuring and active management of real estate and infrastructure assets.
ICAM has an institutional grade investment team bringing a sound investment philosophy, strong commercially focused risk adjusted investment process, proven strategy and an attractive track record. ICAM specialises in the investment and management of real assets in sectors such as commercial office, strategic retail, mixed use development, seniors living and port infrastructure investments.