Dutch pension investment company APG and OMERS Infrastructure have brokered a deal to jointly purchase energy transition platform Groendus from NPM Capital.
Groendus develops, builds and operates energy assets and offers a wide array of ancillary services for its clients, which include companies, municipalities and institutions.
The company has installed more than 170MWp of solar capacity to date, as well as more than 12,000 electricity meters.
It intends to increase its solar project portfolio and enter new sectors such as electric vehicle (EV) charging and battery storage.
OMERS Infrastructure has made the investment on behalf of Canadian pension plan OMERS.
The deal is expected to close in the third quarter of this year if given regulatory approval.
The financial details and other terms of the deal have not been made public.
The acquisition marks OMERS Infrastructure’s first infrastructure investment in the Netherlands and its fifth global investment in renewable power.
The pension plan previously invested in Azure Power, FRV Australia, Leeward Renewable Energy and Navisun.
OMERS Infrastructure head of Europe Alastair Hall said: “In Groendus, we see an excellent opportunity for OMERS to invest into an energy transition growth platform with a clear mission to enable its commercial, industrial and public customers to decarbonise.
“Alongside APG, we look forward to working with Groendus’ experienced leadership team and playing an active role in helping the company continue to grow and deliver on its purpose to enable 100% clean energy for every organisation and institution in the Netherlands.”
APG head of Global Infrastructure Investment Strategy Jan-Willem Ruisbroek said: “As a pension investor, we are continuously looking for attractive, long-term, responsible investments.
“Not only do we expect solid returns, it also contributes to APG’s ambition to support the development and scale up of technology enabling a rapid energy transition in the Netherlands as well as the UN Sustainable Development Goals.”
Renewables Now also reports that APG and OMERS will jointly buy Dutch solar developer Groendus:
Pension investor APG and OMERS Infrastructure have sealed a deal to jointly acquire Dutch renewables developer Groendus from NPM Capital.
Formed last year through the merger of six companies, Groendus is an energy transition platform that develops, builds and operates energy projects, while also providing ancillary services to its customers. To date, the firm has installed over 170 MWp of solar capacity and more than 12,000 smart meters. It currently aims to reach 300 solar projects in its portfolio.
APG noted that its investment in Groendus is done on behalf of pension fund client ABP. On the other hand, the Canadian infrastructure investment advisor is investing on behalf of the pension plan OMERS. It represents the latter’s first such deal in the Netherlands.
“Not only do we expect solid returns, it also contributes to APG’s ambition to support the development and scale up of technology enabling a rapid energy transition in the Netherlands as well as the UN Sustainable Development Goals,” commented Jan-Willem Ruisbroek, Head of Global Infrastructure Investment Strategy at APG.
OMERS Infrastructure put out a press release on this deal:
Investment marks first infrastructure investment for OMERS in the Netherlands
APG and OMERS, as active investors, plan to support Groendus’ ambitious energy transition growth plans
(May 18, 2022) – OMERS Infrastructure and APG have today announced the signing of an agreement to jointly acquire Groendus from NPM Capital. Groendus is an energy transition platform in the Netherlands that was established in 2021 through the merger of six companies in the rooftop solar, metering and energy services spaces. APG’s investment is done on behalf of its pension fund client ABP. APG is the largest pension provider in the Netherlands; OMERS Infrastructure is investing on behalf of OMERS, one of the largest pension plans in Canada.
Groendus develops, builds and operates energy assets as well as provides a wide portfolio of ancillary services for its customers. With its team of over 130 people in the Netherlands, Groendus has so far worked with more than 4,000 companies, municipalities and institutions, and has installed more than 170 MWp of solar capacity and over 12,000 meters to date. Groendus is committed to grow its portfolio of 300 solar projects, and also expects to provide customers with an increasing suite of energy transition solutions, such as EV charging and battery storage.
Alastair Hall, Senior Managing Director and Head of Europe, OMERS Infrastructure, says: “We’re thrilled to be announcing today our first investment in European renewables. In Groendus, we see an excellent opportunity for OMERS to invest into an energy transition growth platform with a clear mission to enable its commercial, industrial and public customers to decarbonize. Alongside APG, we look forward to working with Groendus’ experienced leadership team and playing an active role in helping the company continue to grow and deliver on its purpose to enable 100% clean energy for every organization and institution in the Netherlands.”
Jan-Willem Ruisbroek, Head of Global Infrastructure Investment Strategy at APG, says: “APG is excited to announce the investment in Groendus, which is a rare opportunity in the accelerating Dutch energy transition space and fits the core of our strategy. As a pension investor, we are continuously looking for attractive, long-term, responsible investments. Not only do we expect solid returns, it also contributes to APG’s ambition to support the development and scale up of technology enabling a rapid energy transition in the Netherlands as well as the UN Sustainable Development Goals. We are grateful to NPM for establishing the Groendus platform which serves as a foundation of future growth and look forward to working together with OMERS Infrastructure in the years to come to support Groendus in its mission and ensure a long-term, stable and sustainable investment return for our pension fund client APB and its participants.”
René Raaijmakers, CEO Groendus, says: “There is an urgent need to transform the traditional energy supply into a sustainable, clean energy system. Jointly with our customers, Groendus makes a major contribution through its renewable energy assets, insights by smart metering data and with our unique peer-to-peer sustainable energy trading platform. We build on the support and strong financial backing of our shareholders. We are grateful for the huge impact NPM Capital has made during the initial years bringing together six companies into the Groendus platform. We are proud for the trust given to our team by OMERS Infrastructure and APG, allowing Groendus to accelerate its efforts to continue building the energy transition service portfolio for our customers.”
Following close of the transaction, Groendus will become OMERS Infrastructure’s fifth global investment in renewable power, alongside Azure Power (India), FRV Australia, Leeward Renewable Energy (USA) and Navisun (USA). For APG, the investment builds on its already substantial global energy transition portfolio following its previous investments in renewable energy assets like Merkur (Germany) and Vasa Vind (Sweden).
APG and OMERS Infrastructure were advised by Voltiq, Rothschild, Latham & Watkins, Loyens Loeff, Strategy&, Arcadis and EY. The closing of the transaction is expected in Q3 2022, subject to customary regulatory approvals. Terms of the deal are not being disclosed.
About OMERS Infrastructure
OMERS Infrastructure manages investments globally in infrastructure on behalf of OMERS, a defined benefit pension plan for municipal employees in the Province of Ontario, Canada, and third-party investors through its Strategic Partnership Program. OMERS Infrastructure currently has approximately C$32 billion in assets under management and over 30 investments, principally in North America, Europe and Asia-Pacific and across sectors including energy, digital services, transportation and government-regulated services. OMERS Infrastructure has employees in Toronto, New York, the U.K., Continental Europe (including Amsterdam, NL), Asia and Australia. More information: www.omersinfrastructure.com.
About APG
As the largest pension provider in the Netherlands APG looks after the pensions of 4.8 million participants. APG provides executive consultancy, asset management, pension administration, pension communication and employer services. We work for pension funds and employers in the sectors of education, government, construction, cleaning, housing associations, sheltered employment organizations, medical specialists, and architects. APG manages approximately €606 billion (March 2022) in pension assets. With approximately 3,000 employees we work from Heerlen, Amsterdam, Brussels, New York, Hong Kong, Shanghai and Beijing.
This investment in Groendus jointly made with APG represents the first infrastructure investment for OMERS in the Netherlands.
As stated above, following the close of the transaction, Groendus will become OMERS Infrastructure’s fifth global investment in renewable power, alongside Azure Power (India), FRV Australia, Leeward Renewable Energy (USA) and Navisun (USA).
For APG, the investment builds on its already substantial global energy transition portfolio following its previous investments in renewable energy assets like Merkur (Germany) and Vasa Vind (Sweden).
So what is Groendus and why is this renewables developer and energy transition platform so attractive to these long-term investors?
From the press release:
Groendus develops, builds and operates energy assets as well as provides a wide portfolio of ancillary services for its customers. With its team of over 130 people in the Netherlands, Groendus has so far worked with more than 4,000 companies, municipalities and institutions, and has installed more than 170 MWp of solar capacity and over 12,000 meters to date. Groendus is committed to grow its portfolio of 300 solar projects, and also expects to provide customers with an increasing suite of energy transition solutions, such as EV charging and battery storage.
It is a renewables developer which is increasingly focused on energy transition solutions and that shift is critically important to both APG and OMERS Infrastructure.
Having APG as a partner on this deal is also relevant because it manages billions on behalf of its largest pension fund client, ABP, and obviously knows the Dutch market very well.
Also worth noting that APG and OMERS Infrastructure will actively work with Groendus to help it grow its operations.
Alastair Hall, Senior Managing Director and Head of Europe, OMERS Infrastructure, states this:
“We’re thrilled to be announcing today our first investment in European renewables. In Groendus, we see an excellent opportunity for OMERS to invest into an energy transition growth platformwith a clear mission to enable its commercial, industrial and public customers to decarbonize. Alongside APG, we look forward to working with Groendus’ experienced leadership team and playing an active role in helping the company continue to grow and deliver on its purpose to enable 100% clean energy for every organization and institution in the Netherlands.”
OMERS takes sustainable investing very seriously and part of its strategy to achieve net zero by 2050 or earlier is to invest in energy transition assets.
That's why this platform fits nicely in its portfolio and that of APG's, another global leader in responsible investing.
Below, Groendus and Zoncoalitie realize solar roofs for Makro. Listen to Benjamin Weiss, CFO of Makro Netherlands and others explain why they're very happy to be shifting more to renewables to address their growing energy needs. Watch this clip, this is what the energy transition economy is all about.