Schroders Greencoat to acquire Toucan Energy’s £700m UK solar portfolio

Toucan Energy portfolio is an operational solar portfolio traded in the UK.

  • A significant portion to be acquired by six Local Government Pension Schemes
  • Tokyo Century is acting as a co-investor in the acquisition
  • Schroders Greencoat is the renewables manager of Schroders Capital

Schroders Greencoat will acquire majority of Toucan Energy portfolio, an operational solar portfolio traded in the UK, valued at around £700 million ($888.8 million; €820.2 million).

Toucan Energy’s solar portfolio consists of 53 operating solar farms in the UK. It has a combined capacity of 513.5MWp across England, Wales and Northern Ireland and powers the equivalent of around 184,000 homes, according to a release.

The portfolio will be acquired by Schroders Greencoat managed funds, including Greencoat Solar II and Greencoat Renewable Income, as well as recently launched mandates.

A significant portion will be acquired by six Local Government Pension Schemes: Avon, Cornwall, Devon, Gloucestershire, Oxfordshire and Wiltshire Funds via Schroders Greencoat Wessex Gardens, a place-based and locally focused renewable energy infrastructure fund.

Tokyo Century is acting as a co-investor in the acquisition.

“This is a major achievement for Schroders Greencoat, particularly given the size, complexity and number of stakeholders involved in the transaction,” said Lee Moscovitch, partner at Schroders Greencoat. “We will aim to deliver reliable returns for our investors via these assets, as they continue to provide a substantial contribution to the UK’s net zero strategy.”

Schroders Greencoat’s team of asset managers plan to harness the portfolio’s reliable generation of clean electricity and support the long-term financial stability of the assets, the release added.

Schroders Greencoat, the renewables manager of Schroders Capital, has 1.35GWp of solar assets under management.

London-based Schroders Capital provides a range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, insurance-linked securities and impact investing. The firm has over $88 billion assets under management.

RBC Capital Markets acted as exclusive financial adviser to Schroders Greencoat on the transaction. Schroders Greencoat’s advisory team included Eversheds Sutherland, Evergy and PwC.