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Allianz grows US wind portfolio with Illinois investment

The German-based investor said it sees the US wind market as an attractive way to grow its €16bn portfolio of alternative assets.

Allianz Capital Partners, the alternative investments division of Allianz Group, has invested in a 184MW wind project in Illinois developed by EDF Renewable Energy.

The investment is for an undisclosed amount of tax equity committed to the Kelly Creek wind project in the central Illinois counties of Ford and Kankakee. Allianz said in a statement the deal highlights an increased prioritisation of its growing US wind farm portfolio.

“The US offers a very attractive framework for wind investments,” Allianz’s head of renewables David Jones said. “With these kinds of investments, we can offer stable and uncorrelated returns to Allianz even in the current low interest environment.”

Allianz has built a €16 billion portfolio of alternative assets. Overall, Allianz has now invested in a total of 73 wind farms and seven solar projects in Austria, Finland, France, Germany, Italy, Sweden and the US.

The German-based asset manager first entered the US wind market in February 2016 through a partnership with Bank of America Merrill Lynch to acquire two wind projects, again developed by EDF. The two projects generate 250MW and 49.65MW in New Mexico.

In December, it provided a $400 million debt commitment to the 400MW Grand Prairie Wind project in Nebraska. The project was developed by BHE Renewables, a subsidiary of Berkshire Hathaway Energy. It also partnered with Mitsubishi UFJ Financial Group in December to acquire Class A non-managing interests in a 225MW Oklahoma wind farm for $10 million.