PensionDanmark A/S will invest 153 million pounds ($251 million) to buy shares in six U.K. wind farms as the retirement fund seeks assets with long-term returns and state backing.
PensionDanmark will purchase a 49 percent stake in the ventures from Falck Renewables SpA of Italy, it said today in an e-mailed statement. The projects in Scotland and Wales generate a total of 273 megawatts, or enough to power 160,000 homes, the fund said. It expects approval for the deal early next year.
Retirement and insurance funds are buying up renewable-energy projects that can generate electricity for more than 20 years and receive state subsidies. A unit of insurer Aviva Plc purchased solar-power installations on 4,000 U.K. homes in July while Allianz SE, Europe’s largest insurer, acquired three wind ventures in France and Italy in August.
“Our investments in different types of infrastructure ensure our members an attractive and inflation-linked return for many years,” said Torben Moger Pedersen, chief executive officer of Copenhagen-based PensionDanmark. The company plans to invest $1.44 billion in infrastructure in the next four years, according to the statement.