Germany’s MEAG hopes for windy weather in the UK with latest investment
German asset manager MEAG has invested in three UK-based wind parks on behalf of insurer Munich Re, for which it acts as a fiduciary manager. The acquisition, amounting to at least €100m, is not the first time the manager has invested in wind energy.
A month ago it allocated a ‘double digit million’ amount to a group of six wind parks in the North of Germany.
Both acquisitions are part of the Renewable Energies and New Technologies (RENT) programme, which has a target size of €2.5bn. Since the launch of the programme at the start of last year, €600m has already been committed to relevant projects across Europe.
Pension funds and other long-term institutional investors are increasingly looking at wind power in their search for long-term yielding returns, to match their similarly long-dated liabilities.
Shorter-term investors, by contrast, have often been spooked by the impact of the crisis on the wind farm industry.
Returns on wind and solar projects are now around 7%, according to David Jones, CEO of Germany’s Allianz Specialized Investment. Allianz, Europe’s largest insurer, has invested more than €1.3bn in renewable energy since 2005, according to an interview between Jones and Reuters.
MEAG’s managing director Holger Kerzel says: “We continue to diversify our sustainable investment portfolio with low risks and attractive returns.” The UK is attractive due to its stable regulatory framework and stiff winds.
MEAG manages money on behalf of German insurers Munich Re and ERGO. It also serves other institutional and retail clients in Europe, Asia and North America. Its assets under management amount to around €226bn.