Glennmont Partners from Nuveen (Glennmont), one of the world’s largest fund managers investing in clean energy, has announced that it has completed the purchase of a 50% stake in the 900MW German offshore wind farm Borkum Riffgrund 3. Glennmont leads a consortium of investors in the project including Nuveen’s parent TIAA, listed Japanese utility Kansai Electric Power Company (Kansai) and other institutional investors from the USA and Germany.
Glennmont has completed its acquisition of a 50% ownership share in Borkum Riffgrund 3 from Ørsted for a transaction value of c.€1.2bn, following the signing of purchase agreements in October 2021. The project, when completed, will be the largest offshore wind farm in Germany.
The investment from Kansai represents the second agreement of its kind between Glennmont and Kansai following their purchase of a 15% minority stake in Project Piiparinmäki, the 211.4MW wind farm in central Finland in 2020. The agreement on Borkum Riffgrund 3 further underlines the long-term strategic partnership between the two organisations, who will explore further joint participation on renewable energy projects not only in Europe, but also in the major Asian economies and the USA.
Joost Bergsma, CEO and Managing Partner at Glennmont Partners, commented:
“Glennmont are delighted to extend our partnership with Kansai and close Borkum Riffgrund 3 with this consortium. This latest deal highlights the value and strength of our strategy, delivering returns for investors from different assets. We look forward to working with Kansai on co-investing in further projects as we aim to develop our portfolio in the major Asian markets and the USA.”
In March 2021, Glennmont was acquired by Nuveen, the $1.3tn global asset manager, which will better enable Glennmont to drive its plans to raise further renewable funds, and to target new investments in all major technologies – offshore wind, onshore wind and solar PV – in their core European markets as well as across Asia Pacific and the US.
Linklaters acted as the legal advisor on the transaction for Glennmont and CMS acted as the legal advisor for Kansai.