CBRE Caledon Capital Management has invested $260m (€236m) in US-based independent renewable energy firm Pattern Energy Group.
The infrastructure and private equity investor, on behalf of a fund it sponsors as well as its separately managed accounts, is investing the capital via Pattern Energy’s private placement of perpetual preferred stock.
CBRE Caledon said a number of institutional co-investors are also participating in the transaction.
Pattern Energy said it will use a portion of the proceeds to buy ownership interests in two operating wind power facilities, the Henvey Inlet Wind facility in Ontario and the Grady Wind facility in New Mexico.
Pattern Energy has a portfolio of 28 renewable energy projects, including one project it has agreed to acquire, with an operating capacity of 4.4GW in the US, Canada and Japan.
Jeffrey DeBlock, partner at CBRE Caledon, said: “We identified an opportunity to creatively access the renewable energy market to generate attractive risk-adjusted returns through a structured equity security that provides exposure to Pattern Energy’s high-quality portfolio of operating renewable projects and Pattern Development’s robust development pipeline.”
Stephen Dowd, partner, global head of infrastructure at CBRE Caledon, said: “CBRE Caledon understands that infrastructure investing has a large impact on our communities, and we are committed to investing in a responsible manner that takes into account the environmental and social impacts of our investments.
“We are excited to complete this investment on behalf of our fund and separately managed accounts and continue to support the green shift in power production.”
Mike Garland, CEO of Pattern Energy, said: “This preferred stock offering with long-term institutional investors, led by CBRE Caledon, represents a strategic relationship that enables us to fund a significant growth initiative, increasing our portfolio by 13% to 4.4GW of operational capacity across 28 renewable energy facilities.
“The Henvey Inlet and Grady acquisitions are accretive with each facility characterised by strong cash flow profiles that are backed by long-term power contracts with investment-grade offtakers.”
Garland said the preferred stock offering maintains Pattern Energy’s conservative capital structure with a form of attractively priced permanent capital that funds growth without the need to issue new common equity.