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.
The L&G NTR Clean Power (Europe) 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.
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.
Click here for more info on the East Anglia ONE windfarm
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