GEMS is a new asset manager for renewable energy generation plants

Glennmont Partners and PGGM Infrastructure Fund, the infrastructure investment vehicle of the Dutch pension fund PGGM, have established Green Energy Management Services (GEMS) to manage their portfolios of renewable energy assets in Italy and the provision of asset management services for third parties.

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GEMS will be an independent asset manager

GEMS is set to become an independent asset manager of renewable energy generation plants and to develop, build and manage large portfolios of renewable energy assets throughout Italy. GEMS will comprise the 25 employees of Società Energie Rinnovabili spa (SER spa), who have a total experience of over 120 years in asset management activities in the renewable energy sector, with SER spa already part of the Glennmont-PGGM joint venture.

SER spa was until now 100% controlled by CEF 3 Wind Energy spa, a holding company active in the renewable energy sector and in particular in the management of onshore wind farms in Italy, which in turn was 50.1% controlled by CEF 2 Wind Energy bv, which is part of Glennmont Partners. The remaining 49.1% of CEF 3 Wind’s capital is held by Eolica bv, a vehicle controlled by PGGM.  SER spa, which operates 5 wind farms for a total capacity of 112.9 MW, owns 96% of Società Energie Rinnovabili 1 spa (SER 1) which operates 6 wind farms for 131.8 MW. All for a total of 245 MW.

In October 2017, CEF 3 Wind Energy spa listed $192 million (€170 million) in bonds to ExtraMot Pro. The bond pays a coupon of 2.01% and matures in January 2025.

Glennmont Partners had recently offered for sale its portfolio of wind energy assets, consisting of 245 MW of plants located largely in Southern Italy and inherited from the acquisition made in 2016, when the assets were sold by the Spanish company Iberdrola. The value of the portfolio was said to be around $564 million (€500 million). It is not clear, therefore, whether the transaction just announced is a prodromal reorganization to the sale or represents an alternative solution.

The note released on June 22nd, explained that GEMS will start operating with about 400 MW of wind energy assets under management, immediately becoming one of the largest asset management operators in the Italian market. The company intends to implement an organic growth strategy to provide a full range of services to existing and new customers.

Francesco Cacciabue, partner and CFO of Glennmont Partners, said: “GEMS brings together the experience of our team in operating and managing assets in Italy. As one of the largest players in the sector, we believe that the market offers excellent opportunities for providers of renewable energy plant management services. The great experience of the team will ensure the adoption of a high added value approach in all the activities carried out by the GEMS team. This many years of experience is a value recognized and appreciated by both PGGM and Glennmont, and we look forward to sharing it with other asset owners in Italy.”

Martijn Verwoest, head of PGGM’s Energy & Utilities division, explained: “GEMS will leverage its experience in asset development and management to build a portfolio of service contracts throughout the Italian renewable energy market.”

Glennmont Partners is one of the world’s largest fund managers exclusively focused on renewable energy investments

The company raises long-term capital to invest in renewable energy generation projects such as on-shore and off-shore wind farms, biomass power plants, photovoltaic plants and small hydroelectric power plants. Its investments, carefully selected and managed on a risk basis, provide lasting performance and predictable returns over periods of 10 years or more. Glennmont manages a portfolio of more than 840 MW of mixed renewable energy generation. Based in London, the team has been working together since 2007.

In December 2019, Glennmont Partners acquired through CEF 6 Wind Energy (controlled by Glennmont Clean Energy Fund III ) Andali Energia, the owner of a 30 MW wind farm in Andali (Calabria). In June 2019, Glennmont Partners announced the final closing at $960 million (€850 million) for its third fund dedicated to renewable energy projects in Europe and the UK, Clean Energy Fund III, far exceeding the initial target of $677 million (€600 million). At the end of December 2018, Glennmont sold its Italian PV portfolio to Tages Helios and Tages Helios II funds, managed by Tages Capital sgr.

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