Norway’s Kommunal Landspensjonskasse (KLP), asset manager MEAG and Singaporean conglomerate Keppel Corporation are committing €160m each for stakes in wind farms in Europe alongside renewable energy developer Fred Olsen Renewables AS (FORAS).
FORAS said a fund created by KLP, MEAG and Keppel has agreed to provide the €480m equity financing for a 49% stake in three existing windfarms in Norway and Sweden and future onshore windfarms in the UK and Sweden.
The fund has initially invested €176m to buy a 49% interest in the Lista Vindkraftverk, Fäbodliden Vindkraft and Högaliden Vindkraft wind farms with a combined capacity of 258MW.
The fund is also expected to invest the remaining capital to acquire 49% share in projects that FORAS will develop in the UK and Sweden.
FORAS will remain a 51% shareholder of the wind farms.
Sverre Thornes, CEO of KLP, said, “This investment with Fred Olsen Renewables is a good way for KLP and the other institutional investors to access a strong portfolio of diversified land-based wind power investments.
“A long-term partnership with a developer and operator such as FORAS provides an attractive and predictable return while also helping to reduce CO2 emissions and meet the ambitions in the Paris agreement.”
Holger Kerzel, the global head of illiquid assets and member of MEAG’s management board, said: “With the electricity generated by the wind farms, we will make a remarkable contribution to our common goal of reducing greenhouse gas emissions.
“This project further expands our portfolio and meets our ambitious requirements for sustainable and economically successful investments in renewable energy assets.”
Loh Chin Hua, CEO of Keppel Corporation, said: “The investment will provide Keppel not only with stable recurring income from the operating assets but also a strong deal flow pipeline in well-established markets in the Nordics and the UK.”
Jopy Chiang, CEO of Keppel Infrastructure Fund Management, the trustee-manager of Keppel Infrastructure Trust (KIT), said this investment marks KIT’s first investment in the renewable energy sector, and KIT’s maiden acquisition in Europe.
Anette Olsen, chair of FORAS and CEO of parent company Bonheur, said: “We are very pleased to continue to build good partnerships, and here with strong long-term renewable energy investors KLP, MEAG and Keppel.
”This is another important step to further strengthen our ability to contribute towards the World’s need for renewable energy.”
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