Infrastructure investment for PGGM

windfarm_410Dutch pension fund PGGM got together with Dutch Ampère Equity Fund, managed by Triodos Investment Management, to acquire a 24.8% stake in a windfarm for around £16m (€18.8m).

The consortium put together by the two entities has entered into the agreement with Dong Energy, owner of the 367MW Walney offshore wind farm, which is under construction.

The purchase price excludes payment for the transmission assets, which are in the future to be owned by a separate transmission operator to be decided by the UK regulator.

Henk Huizing, head of infrastructure investments at PGGM said: “This direct investment in clean energy is aligned with the ESG criteria in the investment policy for our clients. It highlights our infrastructure change in strategy to shift our focus from fund investments to entering into partnerships with strategic players for direct investments. Our infrastructure investments are made through the PGGM Infrastructure Fund 2010-2011 containing commitments for €1.25bn and with current investments in social infrastructure, transportation, communication and energy."

Joris van der Geest of Triodos Investment Management, fundmanager Ampère Equity Fund, said: “Offshore wind is a crucial part of the renewable energy mix and an important market for the Ampère Equity Fund. This investment proves the added value of the focus on renewable energy to institutional investors in the Ampère Equity Fund."

DONG Energy will be the leading partner in the remaining construction works related to the Walney Offshore Wind Farm, and has assumed certain specific obligations towards PGGM and Ampere Equity Fund relating to the final construction cost of the project and its timely completion.

Excluding the connection to the Great Britain electricity network, the cost of constructing Walney is expected to total approximately GBP 1 billion (DKK 8.6 billion). DONG Energy provides interim financing to the consortium for the consortium's 24.8% share of the construction costs of the project, which the consortium expects  to refinance with external project financing upon completion of the wind farm.

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