Pensions Infrastructure Platform (PIP), a dedicated infrastructure investment manager established by pension schemes, for pension schemes, to facilitate long term investment into UK infrastructure, has reached an important milestone in its development with the first equity investment by the PiP Multi-Strategy Infrastructure Fund (MSIF).
The PiP MSIF has acquired a portfolio of 31 individual wind turbines from Golden Square Energy, the leading renewables business and joint venture partnership between Ingenious Infrastructure and AGR. The sites are well diversified across the UK and all of the turbines are operational and accredited under the UK’s feed-in-tariff (FiT) regime.
The predictable FiT revenues, combined with guaranteed availability under long-term O&M contracts, will provide investors with 20 years of inflation linked cash flows to help them meet their long-term pension obligations. MSIF will continue to build on this investment, and its previous investment grade, inflation linked debt refinancing transaction, to deliver a broadly diversified portfolio of UK infrastructure assets for its pension scheme investors.
Mike Weston, Chief Executive of PIP says: “This first equity investment for the PiP Multi-Strategy Infrastructure Fund marks another landmark in the development of PiP. We are pleased to have been able to work with the sellers, Golden Square Energy, as well as our advisor B Capital Partners, on this proprietary transaction, which provides our pension scheme investors with the secured, long-term, inflation linked cash flows they are seeking to support their accrued pension payment obligations.”
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Baiju Devani, Investment Director, Golden Square Energy, says: “Golden Square Energy is delighted to have worked with PiP to complete this transaction. Ingenious Infrastructure’s joint venture with AGR, was established with the objective of developing and operating high quality renewables projects which bring value to the UK economy and our investors. Achieving endorsement from a major institutional investor such as PiP is testament to the quality of the portfolio and our commercial relationships.”
Dr. Barbara Weber, founding partner of B Capital Partners, says: “We are excited about having been able to work with PiP on this truly proprietary opportunity. PiP’s direct equity investment in this low-risk portfolio demonstrates the attractiveness to institutional investors of controlling key parameters such as holding period, leverage and contractual structures which strongly influence the risk-return level of any given investment.”