Swedish pensions provider AMF makes £237m investment in UK wind

Meanwhile, AP3, the government pensions buffer fund, forms venture for investment in green housing.

Swedish occupational pensions provider AMF has acquired a 49% stake in an UK offshore wind park for £237m (€324m), marking its second big investment in that country’s renewables sector in the last few months. The move is one of an increasing number of asset owners taking stakes in developed renewables infrastructure.
The seller of the wind park, called Ormonde, is Swedish energy giant Vatenfall, the park’s developer, which will continue to own the other 51% majority stake in Ormonde and operate the wind park. Located 10 kilometres off of Barrow-in-Furness in the Irish Sea, Ormonde has been generating power since its completion in 2012.
Peder Hasslev, AMF’s Head of Asset Management, said in a statement: “AMF manages the pensions of four millions customers, meaning we have a responsibility of generating good and secure returns for them. As the Ormonde wind farm is both sustainable and generates these returns, it’s a good fit for us.”
Hasslev did not specify what return AMF expected from Ormonde, and a spokesman for AMF was not immediately available for comment. Based in Stockholm and listed on the NasdaqOMX exchange, AMF looks after SEK518bn (€55.6bn) in pension assets.The Ormonde deal is the Swedish firm’s second big investment in the UK renewables sector in just the last few months. In mid-October, AMF and the Strathclyde pension scheme said they had allocated £355m to an offshore wind fund launched by the UK’s Green Investment Bank (GIB).
With AMF and Strathclyde’s participation, the UK fund has taken in £818m from investors so far, just under its £1bn target.
AP3 forms venture for investment in green housing
The Swedish state pension buffer fund, AP3, has formed a venture with listed property company Balder for the purpose of investing in new residential real estate.
According to the partners, the venture will invest to build new housing in major cities (i.e. more than 50,000 inhabitants), including Stockholm, Gothenburg and Malmö. The buildings will have to be certified as environmentally friendly under Swedish standards. The amount of investment was not disclosed.
AP3, which has around SEK304bn in assets, currently has no exposure to residential housing. Said Kerstin Hessius, the fund’s Chief Executive: “We see good opportunities in developing our Swedish property portfolio with residential housing together with Balder, a well-established company in the sector.”