Aviva Investors has completed a €40m investment into Connected Infrastructure Capital GmbH (CIC).
The deal sees Aviva Investors acquire a majority shareholding in CIC, which specialises in the development and management of onshore wind and solar projects across northern and Central Europe. This investment is expected to provide CIC with the necessary funding to support existing development activities and expand its project pipeline.
It is the second investment made by Aviva Investors into the European renewables sector in quick succession, following the announcement that it had increased its existing stake in Innovo Renewables, an Italian-based company which develops, constructs and manages renewable energy projects across Italy, the UK and Spain.
Founded in 2018, CIC specialises in developing, constructing, and operating renewable energy projects across Europe. Its current development activities comprise early- to late-stage wind and hybrid (wind and PV) projects, with an emphasis on Poland and Sweden. The company has a secured portfolio of approximately 1 GW of projects in development. CIC has successfully developed and sold 100MW of onshore wind projects in central Europe which the company still manages; and owns an operating onshore wind farm in Sweden.
Angenika Kunne, Head of Infrastructure Equity at Aviva Investors, said: “This transaction shows we are doubling down on our exposure to renewables, a mature asset class which we believe can deliver good long-term outcomes whilst supporting the energy transition. We are very pleased to be partnering with CIC, an experienced team which has been able to demonstrate strong historical performance and has secured an exciting portfolio of development assets. We believe this positions us well to benefit from increased allocation to renewables and in a way which promotes diversification across regions and technologies.”
Lena Schleyer, Managing Director of CIC, added: “Aviva Investors stepping in as a shareholder allows CIC's next growth phase to begin. We are happy and proud to now bundle forces with such a strong and reputable partner.”
Targeting climate neutrality by 2045 and the installation of more than 9GW of onshore wind by 2030, Sweden is considered a leader in the energy transition across Europe. With Poland’s onshore wind capacity expected to double by 2030, supported by changes to the country’s ‘10H’ rule which sets the minimum distance that must exist between wind turbines and residential buildings, and expected investment by the national government and European Infrastructure Bank (‘EIB’) to support modernisation of the energy grid, Aviva Investors expects both countries to see significant growth in Renewable Energy Sources in the coming years.
Angenika Kunne added: “Continental Europe offers access to some incredibly dynamic markets and fantastic investment opportunities in renewables. Poland is a great example of this; it has been one of the strongest European economies in recent years and is investing heavily into its energy transition and is an exciting, fast-growing market. As an early-mover and supporter of the renewables market in this region, we think it has the potential to offer growth and returns opportunities that can support our clients in meeting their long-term investment outcomes.”
Image source - Aviva.
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