The specialist renewables investment management arm of fund manager Schroders has invested heavily in the largest operational solar portfolio traded in the UK.
Schroders Greencoat is spending around £700 million to majority acquire Toucan Energy’s solar portfolio, consisting of 53 operating solar farms.
Toucan will be invested in by private markets funds managed by Schroders Greencoat, which is the specialist renewables manager of Schroders Capital.
The panels have a combined capacity of 513.5 MWp across England, Wales, and Northern Ireland and power the equivalent of approximately 184,000 homes.
The majority of the portfolio will be acquired by long-standing Schroders Greencoat managed funds, including Greencoat Solar II LP and Greencoat Renewable Income LP, as well as recently launched mandates.
A significant portion is being acquired by six members of the Local Government Pension Scheme: Avon, Cornwall, Devon, Gloucestershire, Oxfordshire and Wiltshire Funds via Schroders Greencoat Wessex Gardens LP, a renewable energy infrastructure fund established last year. Tokyo Century is acting as a co-investor in the acquisition.
Lee Moscovitch, partner at Schroders Greencoat, said: “We are thrilled to have agreed to acquire the largest operational solar portfolio put to market in the UK. This is a major achievement for Schroders Greencoat, particularly given the size, complexity and number of stakeholders involved in the transaction.
“We will aim to deliver reliable returns for our investors via these assets, as they continue to provide a substantial contribution to the UK’s net zero strategy.”
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