DENMARK - Two of Denmark's largest pension funds have acquired 50% ownership of a major offshore wind farm.
PensionDanmark and PKA have invested DKK 6bn ($1.4bn) in the Anholt offshore wind farm, which is to be constructed by DONG Energy before April 2014. PensionDanmark is lead investor in the consortium and will acquire a 30% interest, while PKA will acquire 20%. DONG will own the remaining 50%.
The two funds will pay the purchase price in four instalments beginning at the end of 2011, with the last instalment due at the end of 2013. The instalments represent 14% 30%, 31% and 25% respectively of the purchase price.
DONG has signed a 15-year contract with PensionDanmark and PKA on operation and planned maintenance of the farm. They will take over responsibility for operation and earnings in proportion to their respective interests On 1 April 2014, DONG said.
This week's edition of Professional Pensions is out now
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A month of strikes are due to hit 64 universities from tomorrow over major reforms to the Universities Superannuation Scheme (USS).