Investment in UK Wind Farms

Via the fund Copenhagen Infrastructure I, PensionDanmark is investing approx. 153 million GBP in an acquisition from Falck Renewables S.p.A. of approximately half of six wind farms in the United Kingdom. The total capacity of the wind farms is 273 MW.
With an investment of approx. 153 million GBP, PensionDanmark will be financing the acquisition of a 49 per cent share in six wind farms in Scotland and Wales from Falck Renewables S.p.A., which has wind energy activities in several European countries. The transaction is subject to certain conditions and approvals, which are expected to be satisfied within the first quarter of 2014.

“Our investments in different types of infrastructure ensure our members an attractive and inflation linked return for many years. The investment in the six UK wind farms is an important element in this strategy with Falck Renewables as a very strong partner in European wind,” says Torben Möger Pedersen, CEO at PensionDanmark.

The investment of approx. 153 million GBP will be made via the fund Copenhagen Infrastructure I, which was founded in 2012 and managed by Copenhagen Infrastructure Partners (CIP).

In November, PensionDanmark invested approx. 230 million USD in the NGT natural gas pipeline in the Netherlands, and in August, PensionDanmark invested approx. 128 million GBP via the fund Copenhagen Infrastructure I in a new biomass power plant in the UK. The investment was made in a joint venture with Burmeister & Wain Scandinavian Contractors.

Today, PensionDanmark has direct and indirect infrastructure investments worth just over 1.8 billion USD and is expecting to invest a further 1.44 billion USD in infrastructure over the next four years.

About the investment:
Through the fund Copenhagen Infrastructure I, PensionDanmark is financing its acquisition of 49 per cent of the companies: Ben Aketil Wind Energy Ltd (27.6 MW), Boyndie Wind Energy Ltd (16.65 MW), Cambrian Wind Energy Ltd (58.5 MW), Earlsburn Wind Energy Ltd (37.5 MW), Kilbraur Wind Energy Ltd (67.5 MW) and Millennium Wind Energy Ltd (65.0 MW). The transaction is subject to certain approvals and conditions which are expected to be satisfied within the first quarter of 2014, but not earlier than 15 January 2014. The wind farms are located in Wales and Scotland and have a total capacity of 273 MW, which will supply 160,000 households with power. Please see this map.

The Parties:
PensionDanmark manages labour market pensions under collective and corporate agreements, health care schemes and education funds on behalf of 642,000 members in 27,000 businesses within the private and public sectors. Premium income totalled DKK 10.7 billion DKK (1.93 billion USD) in 2012, and the members’ savings currently total more than 150 billion DKK (27.30 billion USD). This year PensionDanmark won the award for best real estate and infrastructure investments at the IPE European Pension Funds Awards 2013.

Falck Renewables S.p.A. is a company belonging to the Falck Group, listed on the Italian stock exchange in the STAR segment (code FKR.MI), operating in Europe with an installed capacity of 731 MW in 2013. Falck Renewables S.p.A. develops, designs, constructs and manages energy production plants with the aim of contributing to the population’s energy requirements by producing clean energy from renewable sources, according to a precise business plan based on the diversification of production technologies and geographical areas.

Copenhagen Infrastructure Partners K/S (CIP) was founded in October 2012 with PensionDanmark as seed investor with 6 billion DKK (1.08 billion USD) in CIP’s first fund, Copenhagen Infrastructure I K/S. The management company is owned and operated by four partners: Jakob Baruël Poulsen, Rune Bro Róin, Torsten Lodberg Smed and Christian Skakkebæk, all of whom have significant expertise and many years’ experience in infrastructure investments as well as corporate sales and acquisitions.

PensionDanmark’s major infrastructure investments 2010-2013:

  • Nov. 2013: approx. 1.35 billion DKK (approx. 153 million GBP) in 6 wind farms in the UK via the fund Copenhagen Infrastructure I (subject to certain approvals).
  • Nov. 2013: 1.3 billion DKK (230 million USD) in natural gas infrastructure in the Netherlands (NGT).
  • Aug. 2013: approx. 1.1 billion DKK (approx. 128 million GBP) in biomass plants in the UK (Brigg) via the fund Copenhagen Infrastructure I.
  • Jun. 2013: approx. 1.1 billion DKK (200 million USD) in an offshore wind farm (Cape Wind) in the USA via the fund Copenhagen Infrastructure I (conditional upon a final investment decision).
  • Okt. 2012: Undisclosed amount in three wind farms in the US.
  • Mar. 2011: 3.8 billion DKK (690 million USD) in Anholt Offshore Wind Farm
  • Sep. 2010: 700 million DKK (130 million USD) in Nysted Offshore Wind Farm

For more details of the investments, please see the link.

About Copenhagen Infrastructure Partners

Copenhagen Infrastructure Partners P/S (CIP) is a fund management company focused on energy infrastructure including offshore wind, onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, and other energy assets like reserve capacity and storage. CIP has approximately 110 employees and offices in Copenhagen, Taipei, New York, Tokyo, Utrecht, and London.

CIP manages six funds and has more than EUR 8 bn under management. CI I, CI A I and CI A II have PensionDanmark as founding- and sole investor. CI II has 19 Danish and international institutional investors and CI III has 42 institutional investors from the Nordics, Continental Europe, the UK, Israel, Asia, Australia, and multi-lateral organizations e.g. EIB. CI NMF I has 15 investors from the Nordics and Continental Europe.

CIP was founded in 2012 by senior executives from the energy industry in cooperation with Pension Denmark.