British private pension fund USS takes 50% stake in Bruc Energy for €225m

British private pension fund Universities Superannuation Scheme (USS) has acquired a stake of 50% in Bruc Energy, a Spain-based solar energy platform, for €225 million.

Bruc Energy is an investment vehicle established by Canadian pension fund OPTrust and Juan Béjar, a Spanish businessman. It operates as a Spain and Portugal renewables-focused investment vehicle.

Universities Superannuation Scheme said that the deal is arranged by USS Investment Management, its fully-owned subsidiary and principal investment manager and advisor to the scheme.

The acquisition gives the British private pension fund access to a major pipeline of 4GW of solar farms.

Bruc Energy is expected to expand its pipeline beyond the solar farms to invest in wind power and other green energies.

British private pension fund USS takes 50% stake in Bruc Energy for €225m. Photo courtesy of jaidee from Pixabay.

Simon Pilcher – USS Investment Management CEO said: “We are delighted to be committing further finance to renewables and particularly to a major Spanish solar platform like this. We have already invested or committed around £1 billion to renewable energy and demand for this will only increase as more and more countries transition to lower carbon.

“We know that our members care very much about climate change and ESG and we are convinced that USS playing its part in supporting the transition to a low carbon economy makes good financial sense, too. This announcement closely follows on from our stated ambition to become Net Zero by 2050 so this transaction and others like it will be a key plank of our strategy going forward.”

Following the closing of the deal, which is subject to regulatory approvals and other conditions, Bruc Energy will be owned 50% by Universities Superannuation Scheme and OPTrust and Béjar’s vehicle – BROP.

Juan Béjar said: “This partnership is a key step to establishing Bruc as one of the more dynamic players in the renewables industry in Spain, because it ensures access to the funds to develop our current portfolio.

“All three shareholders of Bruc Energy share a long-term vision, but also the ambition and the social responsibility to counter the effects of climate change in the short-term.”