Octopus has secured £107m (€119.5m) for its second renewable asset strategy through a partnership with Korean investors.
The specialist investor said it has formed Renewable Energy Income Partnership II (REIP II) with Korea Investment & Securities (KIS).
Through equity and senior debt, KIS underwrote the whole transaction which will acquire and finance a portfolio of 15 UK solar assets, Octopus said.
KIS will hold their equity investment and the senior debt will be acquired by the three Korean insurance companies, Samsung Fire & Marine Insurance, KB Insurance and Hyundai Marine & Fire Insurance.
REIP II, a 25-year, is the second in a series of asset-based partnerships managed by Octopus, with a focus on renewable energy infrastructure, and follows REIP I, a £300m fund backed by one of the UK’s largest institutional investors.
Alex Brierley, a director of energy investments at Octopus, said: “Renewable Energy infrastructure is an increasingly attractive asset class for institutional investors looking for real assets that offer returns over the long-term.
“We look forward to working with our new partners, a selection of the largest investors in Asia, and originating further renewable energy investment opportunities for them.”
Hiti Singh, the head of institutional investment at Octopus, said: “We have seen an increased interest from institutional investors to partner with us through corporate vehicles.
“Our large renewables portfolio enables us to offer flexibility to institutions looking to invest in renewable infrastructure. We can put in place bespoke structures to suit investors’ needs, for example creating common governance and corporate structures to enable investors to club together to pursue renewables.”
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