Two South Korean institutions have bought a 50 percent stake in one of Europe’s largest onshore wind farms in a managed account deal by Nordic asset manager CapMan Infra.
NH Investment & Securities and NH-Amundi Asset Management have invested in the 235MW Overturingen wind farm in Sweden, which is under construction and expected to be operational by the end of the year. Overturingen benefits from a 29-year power-purchase agreement with Norwegian aluminium company Norsk Hydro, believed to be one of the longest in the world.
The stake was bought from Macquarie’s Green Investment Group, which reached a €270 million financial close on the project in July. CapMan Infra will manage the investment on the Korean group’s behalf.
“We have quite a strong relationship with Korean investors,” Harri Halonen, partner at CapMan Infra, told Infrastructure Investor. “We have a bit of an inroad into the Korean market and there’s strong interest from their side into Europe and especially in the Nordics at the moment.”
Both NHIS and NH Amundi acted as debt financiers in a $1.3 billion transaction last year for a 1.2GW combined-cycle natural gas facility in the US, while they also teamed up in November to launch a co-financing fund for infrastructure projects in Latin America and the Caribbean.
The investment will sit outside CapMan Nordic Infrastructure I fund, the main pillar of the Finland-headquartered firm’s infrastructure strategy. The vehicle was launched last year and reached a €115 million first close in November, ahead of a €300 million target. Halonen expects fundraising to continue until the third quarter of this year.
“It was partly to do with the timing and also with return expectations,” explained Halonen with regards to Overturingen’s position outside the fund. “Our fund is more focused on slightly smaller assets where we can add more value and drive returns for our fund investors. We have a good relationship with the Koreans and we were very happy to do this deal, but the team’s focus is now on delivering the fund’s strategy.”