Border to Coast, an asset pool for 11 UK public pension funds, has invested £40m (€44m) in Sleaford Renewable Energy Plant in a deal representing its first co-investment.

The investment has been made with Greencoat Capital through Border to Coast’s £1.4bn infrastructure investment sleeve.

Daniel Booth, Border to Coast’s CIO, said: “Sleaford Renewable Energy Plant is our first co-investment and marks a significant step forward for Border to Coast as an active alternative investor, reflecting the appetite of partner funds seeking predictable, secure income cash flows from renewable infrastructure assets.

“Projects like Sleaford will have a real impact in tackling climate change and underscores our, and our partner funds’, commitment to long-term sustainable investment while generating sustainable long-term investment returns.”

Based in Lincolnshire, in the north of England, the plant is capable of generating electricity for 65,000 homes, saving 50,000 tonnes of CO2 per annum. It provides a reliable route to market for straw, an agricultural by-product which can represent an additional income source for local farmers, and free heat to public buildings in Sleaford town centre, including the swimming pool, a primary school and the council offices.

Greencoat acquired the plant in June 2020 with funds from Greencoat Renewable Income, a fund backed by UK corporate and local authority pension funds. RPMI Railpen also made a co-investment, as previously reported.

Earlier this month Border to Coast named a head of real estate as it prepares to launch property funds with a potential size of £5bn.

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