Greencoat Capital LLP (Greencoat) has acquired the Sleaford Renewable Energy Plant in Lincolnshire from Glenmont Partners.

The acquisition was made with funds from RPMI Railpen and Greencoat Renewable Income, and has commitments from UK Corporate and Local Government Pension Schemes.

Whilst this is the fourth investment of Greencoat’s recently launched Diversified Private Markets Fund, it also represents the first investment partnership between Railpen and Greecoat.

Railpen highlighted the transaction as a way to diversify the long-term income fund’s holdings in a portfolio focused on asset-backed investments in real estate and infrastructure.

The plant benefits from well contracted government-backed cashflows, and has around 15 years renewable obligation certificate (ROC) life remaining.

It will be operated by Greencoat with involvement from investors on “strategic matters”, though the specific terms of the transaction are not being disclosed.

Commenting on the investment, Railpen Long-Term Income Fund manager, Lewis Vanstone, stated: “The project is an ideal match for the long-term income fund’s continued focus on investing in a diversified portfolio with sustainable, long-dated and asset-backed income characteristics, particularly in the current environment.

“We hope to continue playing an active role in the UK’s transition to a low carbon economy while securing stable cashflows for our members."

Meanwhile, Greencoat Capital partner, Minal Patel, added: “Sleaford is a high-quality asset that will deliver predictable cashflows and significant inflation protection over the long term, helping our clients meet their liabilities.

“It also plays an important role in the area, supplying sustainable heat to local community facilities and providing arable farmers with a reliable offtake for their excess straw.

“We look forward to assuming stewardship of the plant as part of our strategy to build our portfolio of diversified renewable energy investments.”

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