AIP Management, on behalf of PKA, and PFA Pension, has agreed to divest a minority stake of their joint holding in Walney Extension, the operational offshore wind farm located in the Irish Sea. By joining the partnership, the buyer, Octopus Energy Generation, indirectly acquires a 12.5% stake in Walney Extension.
The investment was originally made in 2017 with PKA and PFA investing the equivalent of DKK 6 billion and has since delivered a strong and stable return to the two pension funds.
“The sale demonstrates the value of a good investment through our proven partnership model, benefitting the Danish pension savers and contributing to the sustainable energy transition. We are pleased to continue working with Ørsted and our partners in Walney Extension, now including Octopus Energy Generation,” says Kasper Hansen, Managing Partner in AIP.
Walney Extension is the world’s eighth-largest offshore wind farm, powered by 87 turbines with a total capacity of 660 MW. The wind farm is fully operational, with COD reached in 2018, and generates sufficient green electricity to power approx. 600,000 UK homes annually.
AIP is an investment manager dedicated to managing investments in energy and infrastructure assets supporting the energy transition in Europe and North America. The team consists of approx. 80 dedicated professionals with extensive experience within investments and energy, located in Copenhagen, London, Madrid, and New York.
To date, AIP has invested more than EUR 7 billion of which more than EUR 2 billion has been invested into European offshore wind alone. Once fully operational, the assets are expected to have total renewable energy capacity of approximately 7 GW. AIP’s investors include the Danish pension funds PKA, PenSam, Akademiker Pension and Lærernes Pension, the Norwegian financial group Storebrand, and a group of Swiss institutional investors.