RPMI Railpen is one of the UK’s largest and longest established pension funds for employees who are connected to the railway industry. They operate on behalf of 350,000 members, safeguarding and investing their pensions of £28 billion, collectively.
The company’s latest move has been the acquisition of a Scottish wind farm from building material company, BayWa, therefore supporting the UK’s renewable energy sector with direct investment.
The Tralorg Wind Farm in South Ayrshire has been purchased by Railpen’s in-house manager for an undisclosed amount. The wind farm is due to open next year and is currently being built with eight 2.35MW turbines in the process of being erected.
The farm is one of the only onshore wind farms in the UK that has a Contract for Difference (CfD) in place; this effectively guarantees the price of generated electricity for the next 15 years. The site will have the capacity to create 18.8MW with the potential to power 15,000 homes.
Deputy portfolio manager of Railpen´s long-term income fund, Lewis Vanstone, said: “The wind farm’s sustainable, long-dated and asset-backed income characteristics dovetail perfectly with our core investment themes,”
“The experience and expertise of our partner BayWa ensure this deal will be of great long-term value for members.”
BayWa re Operation Services is BayWa´s UK service business, it will provide Railpen with ongoing operations and commercial management services for Tralorg Wind Farm.
BayWa re UK´s managing director, Gordon MacDougall, said: “We’re very pleased to have secured this first project sale with RPMI Railpen,”
“We look forward to developing an ongoing relationship with them and, once the project is operational, ensuring that the wind farm gives them the best return on their investment through the provision of ongoing asset management services.”