Gresham fund in debut 30MW storage deal

The UK asset manager, which recently set up a new energy division, says it has a further storage pipeline of over 200MW. The deal was clinched from its BSIF fund, which reached a £150m first close last June, halfway to its £300m target.

UK-based asset manager Gresham House has made the first investment from its British Strategic Investment Fund following a 30MW energy storage deal.

The fund – which is targeting net returns of between 8 and 10 percent from investments in UK infrastructure and housing –  has invested in three operational, grid-scale energy storage assets in the UK, including the 15MW Lockleaze project in Bristol, commissioned in August last year by Hazel Capital. The deployment includes a combination of senior loan notes and equity.

Gresham House had not disclosed the size of the investment at the time of going to press.

The manager says its operational energy storage portfolio now stands at 50MW and it has a development pipeline in excess of 200MW. Its exposure to the asset class was significantly boosted in October, after it acquired Hazel Capital’s asset management arm and created the Gresham House New Energy division.

“Energy storage is one area of the new energy sectors that has significant potential from an institutional investment standpoint and is a market that will see strong growth in the coming years,” said Ben Guest, investment director at the BSIF.

The BSIF reached a £150 million ($209.8 million; €169.2 million) first close last June, halfway to its £300 million target. The Royal County of Berkshire Pension Fund, alongside an additional unnamed UK local government pension scheme, acted as cornerstone investors in the fund. A second close, a little over the first close amount, is believed to have been held at the end of 2017.