Aug. 15 (Bloomberg) -- Aviva Plc’s asset management unit and SachsenFonds GmbH, a German investor, bought a 49.4-megawatt Spanish wind farm from Element Power US LLC to help offset lower returns on bonds.
The insurer’s Aviva Investors business and SachsenFonds bought the Almatret wind farm in Lerida, Catalonia, for an undisclosed sum, according to an e-mailed statement. The park started production in 2010 using 25 turbines made by Denmark’s Vestas Wind Systems A/S.
Insurers and pension funds are seeking alternative assets after a decline in interest rates reduced yields on bonds and equity-market volatility increased. Wind farms, promoted by European nations with climate goals and supported by subsidy programs, operate for about 25 years, offering steady gains for institutions.
“In a challenging macro economic environment where yields remain low, especially on government bonds, institutional investors are looking for diversified sources of stable income,” Ian Berry, fund manager for infrastructure and renewable energy at Aviva Investors, said in the statement.
Element Power, a Portland-based developer backed by Hudson Clean Energy Partners, has more than 7,650 megawatts of operating and development-stage wind and solar assets globally.
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