German renewable energy developer Agloria has teamed up with fund manager and administrator Universal Investment to launch a €500 million onshore wind fund.
The fund will focus on projects in Germany and other countries in Western Europe with a comparable regulatory system. The main fund will seek to generate net returns of about 4 percent, although returns can reach up to at least 8 percent through investment in a sub-fund involving more leverage.
Participation in the sub fund will require a minimum of €50 million investment, while the main fund seeks a minimum of €10 million, according to Jorg Heidenreich, managing director of Agloria.
Agloria said its network will allow the fund access to projects in off-market transactions. However, the pair warned of many onshore wind sites on the continent that they would seek to steer clear of.
“In the case of existing parks, poorly selected technologies and errors in implementation are frequently found,” they stated. “Accordingly, these facilities would frequently miss the forecasted results. The new special fund relies on a precise analysis of the correctly selected components and a technically flawless implementation in order to generate stable long-term returns.”
Agloria was formed in 2004 and has been involved in solar and wind investments worth about €1.6 billion. Universal Investment says it is the largest independent investment company in the German-speaking world and is owned by Montagu Private Equity.