German asset manager Union Investment has acquired a 37MW Irish wind farm, allowing it to reach the investment target it had set for its debut renewables fund.
Union purchased the Carrowleagh Wind Farm from Aeropower Wind Energy through Unilnstitutional Infrastruktur SICAV-SIF, a vehicle it launched in 2012. SICAV-SIF are onshore, typically open-ended investment funds based in Luxembourg.
The investment is Union's final major acquisition of this fund, the firm said in a statement. It brings the vehicle's total deployed capital to €320 million, spread across nine wind and solar farms in Germany, France, the UK and Ireland.
“We have invested in the generation of renewable energy at European level to meet the needs of institutional investors and are very satisfied with the results,” said Christoph Schumacher, chief executive of Union's institutional property unit. “The infrastructure fund is broadly diversified and exploits the good conditions for wind and solar energy at the various locations.”
At the time of the vehicle's launch, Schumacher had told Infrastructure Investor said that the vehicle would largely focus on wind to benefit from the sector's potential “economies of scale”, with geothermal and biogas seen as either too risky or unlikely to yield large enough opportunities.
Union was founded in 1956 and is based in Frankfurt. It currently has around €261 billion of assets under management.