German insurance firm Munich Re has agreed to buy a 79MW wind farm in Sweden in a €106 million investment.
The company will seal the deal when it completes the payment in summer 2018 as the Jenasen project begins operations. The vendor, local developer Eolus Vind, will continue to operate the site.
The facility has a 10-year power purchase agreement with Google, which agreed the contract in December 2015. Some seven months later, Eolus secured a Skr600 million ($68.7 million; €61.5 million) loan from Stockholm-based Handelsbanken to cover the construction costs of the project.
The deal represents the sixth tie-up between the developer and Munich Re, which agreed the purchase through its asset management arm MEAG. The German insurer’s assets bought from Eolus total 147MW of capacity, while previous years have seen it acquire a 102MW wind portfolio in the UK from Hg Capital and a share in a 288MW wind farm in Miami in 2014. The latter marked its first infrastructure investment in the US.
“The investment makes an attractive and lasting contribution to the risk diversification of our portfolio and helps to cover Munich Re’s long-term liabilities deriving from its insurance business,” said MEAG managing director Holger Kerzel.
MEAG manages assets valued at about €258 billion, with the majority of its non-current assets based in Germany and the US. The UK and Sweden are its next most valuable investment bases. Its current investments in infrastructure amount to about €2.5 billion, although last year it outlined a programme to build this to €8 billion in the “coming years”.