Norges Bank Investment Management, British Columbia Investment Management Corporation (BCI) and Brookfield have agreed an equal-share partnership to acquire a portfolio of North American renewable energy assets with an enterprise value of approximately $2.6bn (€2.24bn).
The trio have launched Northview Energy to acquire a seed portfolio of 22 US assets from renewable energy companies currently managed by Brookfield, including assets from Deriva Energy, Scout Clean Energy and Urban Grid.
The seed portfolio comprises utility-scale solar and onshore wind assets representing approximately 2.3GW operating capacity diversified across six US power markets.
Northview has also entered into an agreement for potential future acquisitions of renewable assets from Brookfield-managed portfolio companies in the US and Canada representing up to $1.5bn of equity capital.
The companies said future investments will focus on de-risked operational assets, specifically focusing on onshore wind, utility-scale solar and battery storage.
NBIM said it will pay approximately $425m for its 33.3% interest in the portfolio, valuing the total enterprise at approximately $2.6bn.
Harald von Heyden, global head of energy and infrastructure at Norges Bank Investment Managemen, said: ”This marks our first investment in North America and an important step in diversifying our renewable energy infrastructure portfolio.
“We are pleased to partner with Brookfield and BCI as we seek to capture compelling opportunities in one of the world’s largest renewable energy markets.”
Lincoln Webb, EVP and global head, infrastructure & renewable resources at BCI, said: “Northview is a highly strategic addition to our infrastructure portfolio, bringing together de‑risked renewable energy assets, long‑term contracted revenues, and a clear path for growth alongside likeminded, high‑calibre partners.
“With a diversified portfolio of new solar and wind projects serving an established base of premium clients, the platform is designed to be resilient in an evolving energy landscape.”
Jehangir Vevaina, CIO for Brookfield’s renewable power & transition group, said: “This partnership marks the creation of a scalable platform for Brookfield and our partners.
“Northview Energy will be an owner of high-quality operating assets that deliver affordable and clean power to the grid and the framework for future acquisitions provides a clear growth pathway for the vehicle to add de-risked, high-quality, cash yielding assets delivering strong returns.”
NBIM, BCI and Brookfield will share customary governance rights and a dedicated management team will be appointed to lead Northview.
To read the latest IPE Real Assets magazine click here.
