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Allianz closes second renewables fund on €350m

AREF2 attracted €50m more than expected and has already purchased its first project, a 13MW wind farm in Sweden.

Allianz Global Investors has closed its second European renewable energy fund after collecting almost €350 million in total commitments.

The firm held a €190 million second close on Allianz Renewable Energy Fund 2 in June. The vehicle is a successor to the investment manager’s first renewables fund, which closed on €150 million in September 2013.

The final amount garnered exceeds AREF2’s initial target, which stood at €300 million. The fund drew commitments from a clutch of insurance companies, pension funds, foundations, churches and family offices.

Allianz said the fund made its first investment last week with the acquisition of the 12.8MW Bohult wind farm in Sweden from local developer Arise, in a deal worth €19.1 million. It expects to make further investments in the region.

“Wind and solar plants have been planned and developed on a large scale, and are now established, all over Europe,” said Armin Sandhoevel, chief investment officer for infrastructure equity at Allianz.

“Against this backdrop, the secondary market of existing plants is becoming more and more important to us and we are currently seeing very promising acquisition opportunities in Germany, France, Great Britain and Scandinavia.”

He sounded confident the firm would “fully invest the AREF2 volume in a relatively short time as well, while keeping the project quality high”.

Allianz GI estimates that once the fund is fully invested it will manage about €1.6 billion in renewable energy and infrastructure projects.