Munich RE buys Texas wind projects from Starwood

Starwood Energy is nearing its third infrastructure fund’s $1.5bn hard-cap as it eyes longer partnership with the reinsurer.

Starwood Energy has sold 49 percent stakes in two US wind projects, generating a combined 460MW, to German reinsurance firm Munich RE.

Transaction details were not disclosed, but Starwood will hold on to the majority interest in the Horse Creek and Electra projects it built last year in Texas. Himanshu Saxena, the firm’s senior managing director, said Starwood’s development relationship with Munich RE was likely to grow in the future.

Munich RE was advised by its internal asset manager, MEAG, which manages assets valued at about €258 billion, the majority based in Germany and the US. Holger Kerzel, MEAG managing director, said the investment “makes an attractive and sustainable contribution to the continued geographical diversification and expansion of our US infrastructure portfolio”.

Last month, Infrastructure Investor reported Starwood was nearing its $1.5 billion hard-cap for its latest infrastructure fund. It is expected to reach a final close on Starwood Energy Infrastructure III by year-end, according to several sources with knowledge of the matter.

The Connecticut-based energy infrastructure firm has raised around $3 billion in capital over three funds since 2008. Starwood Energy Infrastructure II closed in 2014 on $983 million, more than twice the size of Fund I, which closed on $433 million in 2008.