Pensions Infrastructure Platform (PiP), a dedicated infrastructure investment manager, has announced that it has reached an agreement with Trina Solar to acquire six 5MW solar farms following the successful conclusion of each farm’s construction phase.
The initial tranche of the acquisition, by the PiP Multi-Strategy Infrastructure Fund (MSIF), is for three operational solar farms grid-connected before the end of March 2016 with the remaining three farms to be completed once they become operational. The nature and location of the six assets provide a well-balanced and geographically diversified portfolio.
PiP will also look to use the scale of the current portfolio as a foundation for further, carefully targeted acquisitions of similar assets.
Combining the ROC support regime with offtake arrangements and long term operation and maintenance (O&M) contracts will provide investors the opportunity to benefit from 20 years of inflation linked cash flows to help them meet their long term pension obligations.
PiP was advised on the transaction by KPMG (financial), Eversheds (legal), Everoze (technical), EY (accounting and tax), and Cornwall (market).
MSIF will continue to build on this, and its previous debt and equity investments, to deliver a broadly diversified portfolio of UK infrastructure assets for its pension scheme investors.
Mike Weston, Chief Executive of PiP said:
“This is the fourth investment made by the PiP team on behalf of UK pension scheme investors in the last six months. PiP has made huge progress towards its ultimate goal of providing UK pension schemes with a better way of investing into infrastructure. Last year PiP received FCA authorization, launched the PiP Multi-Strategy Infrastructure Fund, grew the team to eight and added three new independent directors to its Board. This gives us a great foundation for the year ahead.”
Ed Wilson, Chief Investment Officer of PiP said:
“We are pleased to have been able to work with Trina Solar to structure and execute a transaction that provides our investors with the long term, inflation linked cash flows they are seeking to support their accrued pension payment obligations.”