Germany's Allianz Renewable Energy Fund (AREF) has acquired 100% of the 19.5 MW Great Glemham solar farm in the United Kingdom.
The farm, located some 100 miles (161 kilometers) northeast of London, marks AREFs third recent acquisition following an Italian solar farm at the end of 2013 and a German wind farm in February.
AREF, part of German multinational financial services and insurance giant Allianz, financed the purchase of Great Glemham via credit (70%) and the fund's own assets (30%).
Armin Sandhövel, chief investment officer of infrastructure equity at Allianz Global Investors, says the solar farm is a natural portfolio addition for AREF. "In addition to helping ensure our investments are geographically diversified, this solar farm should offer stable cash-flows through the Renewables Obligation subsidy scheme, a long-term power purchase agreement with an investment grade consumer as well as a level of sunshine hours comparable to Germany."
The farm is expected to generate an annual output of some 19,000 megawatt hours, capable of providing electricity to about 4,750 U.K. households. Additionally, the installation is receiving 1.6 Renewable Obligation Certificate (ROC) per megawatt hour under the Renewables Obligation (RO) subsidy program.
Great Glemham was developed and constructed by the German engineering, procurement and construction (EPC) contractor BayWa renewable energy GmbH (BayWa r.e.).
BayWa r.e. and Allianz Global Investors are currently working on new projects. Matthias Taft, BayWa r.e. board chairman, said: "After the successful sale of Great Glemham, we are pleased to already see great opportunities to continue our professional collaboration with Allianz Global Investors."
Bayern LB served as the financing bank of the non-recourse deal in the U.K.
The Allianz Renewable Energy Fund was launched as a closed-end fund for institutional investors in 2012 and closed in September 2013. Investors committed some 150 million to the fund.
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