L&G NTR Clean Power Fund purchases minority stake in an operating offshore windfarm off the coast of Suffolk, England
The Fund, along with a co-investor, will own 10% of the 714 MW operational project.
L&G NTR Clean Power Fund purchases minority stake in an operating offshore windfarm off the coast of Suffolk, England
The Fund, along with a co-investor, will own 10% of the 714 MW operational project.
1 May 2024
The L&G NTR Clean Power (Europe) Fund (the “Fund”) has successfully completed the acquisition of a minority stake in the East Anglia ONE offshore windfarm, alongside the Development Bank of Japan Inc. (“DBJ”). The transaction was completed by NTR, a leading renewable energy specialist, on behalf of the Fund. The Fund is a joint partnership between NTR and Legal & General Investment Management (“LGIM”), one of Europe’s largest asset managers and a major global investor[1].
The Luxembourg-based Fund invests in clean power infrastructure assets across wind, solar and energy storage, putting private capital to work to help drive Europe’s decarbonisation and energy security agenda. It is classified as an Article 9* fund under the European Union’s Sustainable Finance Disclosure Regulation.
Situated 43km off the coast of Suffolk, England, the Fund’s stake has been purchased from Macquarie Asset Management.
With capacity to produce 714MW of clean energy, enough to supply over 630,000 homes, the entire windfarm spans 300km2 and incorporates 102 Siemens Gamesa wind turbines. This acquisition will continue to support critical clean energy supply, helping to support the UK in its decarbonisation targets.
Today’s minority stake in the East Anglia ONE offshore windfarm builds on the Fund’s recent acquisitions; having invested in wind and solar assets across Spain, France and Finland. The Fund’s latest acquisition is a Finnish windfarm, Pajuperänkangas, which will provide clean energy for the equivalent of 36,800 homes across Finland, once fully operational.
Anthony Doherty, Chief Investment Officer, NTR, commented:
“Following recent investments in solar and onshore wind, this latest investment in offshore wind further diversifies the Fund’s allocation by both asset type and geography. Providing clean power for over 630,000 homes across the UK, East Anglia ONE Offshore windfarm is one of the country’s largest projects of its type and it’s hugely exciting to be part of it. This is the latest addition to the Fund which is helping to make contributions to the clean energy transition across Europe and we are delighted that DBJ has co-invested alongside the Fund to secure the asset.”
Bill Hughes, Global Head of Real Assets, LGIM, said:
“The range of investable assets coming as a result of Europe’s clean energy transition has been, and will continue to, grow rapidly in the coming years – particularly within the private markets arena. With a mix of diversification, resilience of cash flows and strong sustainability credentials, we believe there’s increasing potential for institutional investors.
Marking its first investment in the UK, the East Anglia ONE Offshore windfarm is a fantastic milestone for the Fund. With a strong pipeline of capital deployment, we continue to strengthen and diversify our portfolio; seeking to deliver significant growth opportunities for long-term investors who are looking to tap into the European energy transition story. The L&G NTR Clean Power Europe Fund is an exemplar partnership, and so we’re pleased to build on this: co-investing alongside Development Bank of Japan.”
Watson Farley & Williams acted on behalf of the Fund as legal adviser, with K2 Management and Marsh providing technical and insurance advice respectively.
L&G and NTR have worked together since 2015, when L&G became a cornerstone investor in NTR’s first two funds. For the Clean Power (Europe) Fund, the trusted stewardship and institutional network of one of the world’s largest investment managers is brought together with the nimble, specialist expertise of a leading clean energy asset manager. In April 2023, LGIM and NTR announced that €390 million in committed capital and co-investment opportunity had been raised in the Clean Power (Europe) Fund
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Media Enquiries:
Gilly Lock/ Louisa Henry
Powerscourt
Telephone: +44 (0) 20 7250 1446
Email: ntr@powerscourt-group.com
Jessye Brandon
LGIM
Telephone: +44 (0) 7584 498 775
Email: Jessye.brandon@lgim.com
About the L&G NTR Clean Power (Europe) Fund:
The L&G NTR Clean Power (Europe) Fund combines the stewardship and institutional network of LGIM with the sustainable infrastructure expertise of NTR to tackle the climate emergency. An Article 9 fund with sustainable goals as its objective, the fund provides an opportunity for investors to deploy capital into clean energy projects that will drive Europe’s renewable energy transition. The fund invests in the development, construction and operation of wind, solar and energy storage assets, aiming to offer exposure to a diversified portfolio of proven technologies across a number of European countries.
* The Fund has a sustainability and/or ESG focus in its investment process which may i) limit the Fund’s exposure to or exclude certain companies, industries or sectors ii) impact the Fund’s investment performance compared to other funds that do not apply such criteria and, iii) differ from an investor’s own sustainability and/or ESG criteria.
About NTR Plc:
Established in 1978, NTR is an experienced sustainable infrastructure investor and asset manager driving Europe’s clean energy transition. NTR develops, constructs and operates renewable energy projects in circa 60 locations across seven European countries, specialising in wind, solar and energy storage. With approximately €1.6 billion of capital deployed, NTR has developed, constructed and operated over 3GW of wind, solar and energy storage projects to date.
NTR’s mission of developing, constructing, and operating sustainable infrastructure in a responsible manner means that we incorporate an ESG mindset into every stage of the business. From initial investment assessment through to operational projects, NTR aims to have a positive impact on the environment and society while maintaining strong governance and risk management oversight.
For more information please visit: www.ntrplc.com
About Legal & General Investment Management
LGIM is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.159 trillion[2]. We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
[1] Data as at 31 December 2023. Data combines assets under management by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. Assets under management include securities and derivatives positions.
[1] Willis Towers Watson: Thinking Ahead Institute – The world’s largest 500 asset managers Report, October 2023 (link)
[2] Data as at 31 December 2023. Data combines assets under management by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. Assets under management include securities and derivatives positions