Cubico Sustainable Investments (Cubico), a leader and global investor in renewable energy, has announced the sale of a substantial minority stake in its UK operational wind and solar portfolio to GLIL Infrastructure LLP (GLIL), the £1.8bn infrastructure fund backed by Northern LGPS and Local Pensions Partnership.
The transaction sees GLIL acquire a 49% equity stake in the portfolio, which has been operational for more than three years and comprises over 250 MW of wind and solar projects at 18 sites across the UK.
This is the seventh investment by GLIL, an open-ended fund established in 2015 to drive further direct investment in core UK infrastructure and support the long-term objectives of local authority pension funds. GLIL’s other investments include Anglian Water, Clyde Windfarm, Forth Ports and Rock Rail.
Cubico, which is backed by two of Canada’s largest pension funds, Ontario Teachers’ Pension Plan and PSP Investments, will provide long-term management services for the day-to-day operation of the assets.
David Swindin, Head of EMEA at Cubico, said: “This is a strategically significant transaction for Cubico and we are very pleased to have entered into this partnership for our UK operational portfolio. We look forward to working with GLIL and continuing to manage the portfolio to the highest standards as renewables play an increasingly important role in UK and global energy systems.”
Jonathan Ord, Investment Director at GLIL Infrastructure, said: “We see renewable energy assets as integral to UK power generation and a critical part of the country’s future infrastructure. Working with the team at Cubico and its portfolio of quality assets will help us support the growth and decarbonisation of the economy and provide the stable, long-term, inflation-linked returns that our members demand.”
Cubico was advised by Clifford Chance and Brodies (legal), Natural Power (technical) and KPMG (financial). GLIL was advised by CMS (legal), Everoze (technical) and EY (corporate/financial).
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