UK-based commercial solar energy investor Octopus has entered into a new partnership with Korea Investment & Securities (KIS) called the renewable energy income partnership II (REIP II).
The partnership will see £107m ($140m) invested towards Octopus’ renewable assets strategy.
REIP II is reported to be part of Octopus’ institutional investment strategy, bringing the company’s total assets under management (AUM) of institutional funds to £2.3bn.
Octopus Energy Investments director Alex Brierley said: “Renewable Energy infrastructure is an increasingly attractive asset class for institutional investors looking for real assets that offer returns over the long-term.
“We look forward to working with our new partners, a selection of the largest investors in Asia, and originating further renewable energy investment opportunities for them.”
KIS noted that through equity and senior debt it has underwritten the transaction in order to acquire as well as finance a portfolio of 15 solar assets in the UK.
Additionally, KIS will retain their investment and the senior debt will be acquired by the three Korean insurance companies including Samsung Fire & Marine Insurance, KB Insurance and Hyundai Marine & Fire Insurance.
Octopus Institutional Investment head Hiti Singh said: “We have seen an increased interest from institutional investors to partner with us through corporate vehicles.
“Our large renewables portfolio enables us to offer flexibility to institutions looking to invest in renewable infrastructure. We can put in place bespoke structures to suit investors’ needs, for example by creating common governance and corporate structures to enable investors to club together to pursue renewables.”
REIP II follows REIP I, a £300m fund backed by one of the UK-based institutional investors.
Octopus also plans to create renewable portfolios to suit institutional investors’ requirements.