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Allianz nears purchase of German yieldco

The insurance firm’s latest renewables fund is in talks to become the main shareholder in a 152.4MW portfolio of wind farms in Germany.

Allianz Global Investors’ second European renewable energy fund is close to securing an 80 percent stake in the yieldco of German wind developer PNE Wind.

The developer said a subsidiary of the fund “is in a very advanced stage of negotiations” with the company concerning the stake in the vehicle. PNE Wind YieldCo consists of seven wind farms totalling 152.4MW, although Allianz’s proposed deal includes 142.5MW with an option to take an extra 9.9MW.

PNE Wind said the two parties recently entered an exclusivity agreement that is now awaiting approval by Germany’s Federal Cartel Authority. It expects the sale to take place within the next two to three weeks.

The acquisition would represent the fund’s second purchase after it bought a 12.8MW wind farm in Sweden in a deal worth €19.1 million earlier this month. The vehicle reached its final close on €350 million two weeks ago, €50 million above its original target.

The yieldco was launched by PNE Wind in December 2014 with the stated intention of selling part or the whole of its assets to investors by the end of this year. The company had also considered a public listing for the yieldco but earlier this year settled on a sale to investors instead.