Strathclyde Pension Fund (SPF) is investing GBP 80 million in UK Green Investment Bank’s Offshore Wind Fund (GIB OWF) as part of its Direct Investment Portfolio.
On 5 September, Strathclyde Pension Fund allocated GBP 30 million to GIB OWF as a follow-on investment to previously approved GBP 50 million.
SPF said investing in the Offshore Wind Fund was an attractive opportunity to acquire a larger share in operational assets in the offshore wind sector, and it is expecting a gross yield of 9-11%.
“GIB OWF has deployed capital quickly with the purchase of stakes in 5 high quality assets which are already generating an attractive level of cash yield back to SPF, and there is a strong pipeline of additional assets available which meet the investment criteria for the fund.”
The GIB invests directly in projects in the construction phase and in operational offshore wind farms, allowing developers to recycle their capital. It has invested GBP 1.3 billion in the UK’s offshore wind sector, backing eight projects with a total capacity of some 2.9GW of renewable power: Galloper, Rampion, Sheringham Shoal, Westermost Rough, Gwynt y Môr, Rhyl Flats, London Array and Walney.