PKA, one of the largest labour market pension funds in Denmark, has today announced the sale of its 22.5% stake in the Butendiek offshore wind park located in the German North Sea. The buyers are a consortium consisting of Japanese ITOCHU Corporation, listed on the Tokyo Stock Exchange (ticker: 8001:Tokyo), and Chinese CITIC Pacific Limited. CITIC Pacific Limited is a subsidiary of CITIC Limited which is listed on the Hong Kong Stock Exchange (ticker: 0267:Hong Kong).

Danske Pensionskasser Investerer Milliarder I Havvindmoeller

PKA purchased the 22.5% interest in Butendiek in 2013, alongside Industriens Pension, Siemens Financial Services, Marguerite Infrastructure Fund and German developer WPD. The wind park is located in the German North Sea 32 km from the island Sylt, and is serviced from Havneby on the Danish island Rømø. It was completed in 2015 and with a nameplate capacity of 288 MW it supplies power to approximately 300,000 German households.

The investment made by PKA in Butendiek has more than doubled in value during the 3.5 years ownership and has created an annual return of around 25% to PKA’s members. The transaction is the first major divestment by a Danish institutional investor within this asset class and supports the alternative investment strategy of PKA and other Danish pension funds. PKA continues to hold long term investments in offshore wind parks Anholt, Gode Wind II, Gemini and Burbo Bank Extension as well as the Teeside biomass power plant.

The transaction is subject to regulatory approvals.

Bruun & Hjejle acted as legal counsel to PKA in the transaction and also acted as legal counsel to PKA and Industriens Pension in connection with the initial investment in 2013. The successful divestment process underlines Bruun & Hjejle’s commitment to alternative investments.