Solar 21 Renewable Energy Ireland Ltd., a Dublin-based fund, bought six Italian solar parks from AEG Power Solutions BV for 25 million euros ($31 million).
The grid-connected farms in southern Italy will help Solar 21 deliver its pension and regular investors annual returns of 8.5 percent, according to a company statement.
Pension funds are seeking alternative assets after a decline in interest rates reduced yields on bonds amid equity-market volatility. Solar and wind projects, promoted by European nations and supported by subsidies, operate under long-term contracts offering steady returns.
“When you contrast this stable investment environment with the current equity market volatility which has proven to be all risk and little return over the past 10 years, it’s not difficult to see why so many people are drawn to the renewable energy investment concept,” Michael Bradley, Solar 21’s chief executive officer, said in the statement.
Solar 21 is also in negotiations to buy another 12 megawatts worth at least 45 million euros, according to the company. It has raised more than 100 million euros for European photovoltaic farms from Irish investors.