Dutch pension fund investor APG has joined forces with MEAG, Clal Insurance, and other US institutional investors to buy 1.2GW natural gas plants in New York City.
APG said the consortium has agreed to buy 100% of Astoria Energy I and a 55% interest in Astoria Energy II.
Astoria I provides merchant energy and capacity into the New York power market, while Astoria Energy II operates under a long-term tolling agreement with the New York power authority through mid-2031.
Financial details were undisclosed.
Steven Hason, head of Americas real estate and infrastructure at APG said: “As a pension investor, we are continuously looking for attractive infrastructure investments that help us realise stable and long-term returns for our pension clients.
“This transaction represents an opportunity to invest in facilities that provide reliable baseload electricity to New York City and will provide system stability through New York’s energy transition.”
Holger Kerzel, member of the board of management at MEAG, said: “Electricity supply for New York City is an attractive investment opportunity for Munich Re, given the moderate risks and stable and sustainable returns.
“The high level of long-term income stability will cover the liabilities in the insurance business of our clients.”
MEAG is the €278bn asset manager of German insurers Munich Re and Ergo.
Yossi Dory, Clal’s CIO, said: “We are proud to invest alongside reputable investors such as APG and MEAG in long-term, high-quality assets with a proven track record and excellent performance.
“The Astoria projects, which are the backbone of the New York City electric power system, will create long-term, sustainable returns for our pension, provident, and insurance members.”