Selected Alternatives fund
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News and updates from Selected Alternatives fund
17.06.24
Update June 2024
A large part of the Selected Alternatives Fund's investment portfolio is in real estate, and the fund's portfolio contains more than 500 leases in Denmark. With the acquisition of the Theklavej property in Copenhagen's Northwest neighbourhood back at the end of the first quarter, the entire property portfolio is now operational. This is positive for the fund and the investors, as it means that rental income is continuously generated from all the residential properties for the fund.
You can read more about the acquisition of Theklavej in this article:
The Selected Alternatives Fund creates value in a challenging market
The funds that Selected Alternatives invests in are continuously developing projects all over the world, and the Brookfield Global Transition Fund I is one of them. Here, the fund's trustees have just signed a renewable energy supply framework agreement with Microsoft, which is expected to deliver them over 10,500 megawatts of new renewable energy capacity in the US and Europe between 2026 and 2030. In addition, it is expected to add another 3,000 megawatts of development projects to the fund during 2024.
The Selected RegEnergy Fund is still moving forward with new highlights.
The operator, FoodVentures, has now been handed the keys to the completed first phase of the greenhouse in Frövi, which is now operational. With the operator busy in the greenhouse, this also means that the 250,000 tomato plants have just been planted, which will cover approximately 1/10 of Sweden's total tomato consumption. It is still expected that the first tomatoes from Frövi will be available in Swedish supermarkets during late summer. It is worth noting that the supermarket chains ICA and Coop have already committed to buying the production and selling the tomatoes in their stores.
See the latest pictures and video from the greenhouse in Frövi here:
21.05.24
Update May 2024
One of Selected Alternatives' significant investments is in the Canadian infrastructure fund Brookfield Global Transition Fund. The fund is one of the world's largest green infrastructure funds and has commitments from institutional investors totaling USD 13 billion.
The fund invests in projects focused on green transition, sustainable solutions and in particular renewable energy. Brookfield has just released their Q1 2024 report, where they have signed an agreement to acquire the Indian renewable wind energy platform Leap Green, which has a development pipeline of 2.5 GW and 700 MW of operating assets.
Brookfield has invested USD 210 million of its capital in Leap Green and plans to merge Leap Green's portfolio with Brookfield's existing renewable energy assets in India.
Leap Green will be the fund's 18th investment and the fund has identified investments totaling USD 9.6 billion out of its total capacity of USD 13 billion.
For Selected Alternatives Fund's investment in WA3RM Developer Fund I, which is also the lead fund behind the Selected RegEnergy Fund, Phase 1 in Frövi is now approaching the operational phase. Operations are expected to start during May and the first tomatoes from Frövi are expected to be available in Swedish supermarkets during late summer.
For phase 2 in Frövi, the manager's due diligence has now been completed with no obstacles found, and with a pre-approval on final soil preparation, leveling/blasting is almost complete. As you know, phase 2 is projected with an additional 10 hectares of greenhouse, which is also for tomato production for the domestic market in Sweden.
In parallel, the central contracts between the project company, operator and contractor are being finalized, which form the central basis for final approval and thus initiation of the project.
17.04.24
Update April 2024
One of the Selected Alternatives Fund's significant investments is via Copenhagen Infrastructure Partners (CIP), who have just published their annual report for the CI IV fund, which provides a good insight into the investment. Overall, the projects in CI IV follow the fund's pipeline and the fund is well on track to fulfil its return expectations.
By the end of 2023, the fund's portfolio is almost finalised with no less than 20 different projects in various stages of development:
- One solar project in Canada has already been completed and divested
- Five projects are under construction. Including a solar farm in Texas, an onshore wind farm in Canada, an offshore wind farm in Taiwan and a battery farm and biogas plant in the UK
- Two projects will soon start construction
- Twelve projects are still in the development phase
The CI IV fund invests in renewable energy projects and focuses primarily on the development and operation of offshore wind farms. The fund's largest project is an offshore wind farm in the USA. The farm, located approximately 20 kilometres off the coast of Massachusetts, is the first commercial-scale offshore wind project in the US. Once constructed and operational, the wind farm will provide green energy to more than 400,000 homes and businesses in Massachusetts and reduce CO2 emissions by more than 1.6 million tonnes per year.
The Selected RegEnergy Fund's first project in Frövi, Sweden, is now entering its
final stage. The project operator, Foodventures, will take over the lease on 1 May. They have therefore been busy recruiting employees for the first phase of the project in Sweden, and the first teams have now been hired and are ready to start work. In addition, work continues in Frövi to carry out and follow up on the final inspection of the contractor's work before handover to Foodventures.
The RegEnergy project in Frövi is quite unique because it involves a greenhouse and subsequent tomato production on a huge scale. However, it can be difficult to imagine the scale of a 100,000 m2 greenhouse. Our partners and the developers behind the project, WA3RM, have made a video that illustrates just how impressive the project actually is. Watch the video here.
18.03.24
Update March 2024
One of the Selected Alternatives Fund's significant investments is in the Canadian infrastructure fund Brookfield Global Transition Fund, which, with commitments from institutional investors totalling USD 13 billion, is one of the world's largest. Brookfield has just published its annual report, which provides a good basis for an update. By the end of 2023, the fund has identified 17 different investments totalling USD 9.6 billion and is well on its way to being fully invested.
The fund's investments are focused on green transition, sustainable solutions and, in particular, renewable energy. The US renewable energy market is experiencing accelerating demand from, among others, the very largest US tech companies, where new business areas such as artificial intelligence and cloud computing are driving demand. This complements an already high demand for electrification of industry and transport.
With a total investment amount of USD 1.4bn, US solar, wind and battery farm developer Scout Clean Energy is a key piece of the fund's portfolio. Scout Clean Energy is one of the largest renewable energy park developers in the US with a development pipeline of more than 20 GW and is 100% owned by the Brookfield Fund.
The latest news for the property portfolio is that on 1 March, the fund took over the newly built property on Theklavej in Copenhagen's North West district from property developer Crescendo.
The property is located in an attractive and rapidly developing area of Copenhagen, which we have also seen in the high demand for the 31 shareable leases, all of which were rented out at the time of the acquisition of the property, even at higher rent levels than budgeted at the time of acquisition. The property will therefore deliver a stable and attractive operating return going forward, which contributes to Selected Alternatives' long-term ambition to deliver attractive returns with low correlation to the stock market.
The Selected RegEnergy Fund's first project in Frövi, Sweden, continue to progress according to plan. The operator is expected to occupy the lease on 1 May, which is a major milestone. The operator is also in the process of recruiting the workforce of around 200 positions to produce the approximately 8,000 tonnes of tomatoes (over time, production will be optimised to over 9,000 tonnes) and has seen a lot of interest in the local area.
Recently, there has been a lot of media coverage in Sweden about the project in Frövi. For example, Sweden's largest business newspaper Dagens Industri has published a long article that gives a good idea of how far the project has progressed. Read the Swedish article here.
19.02.24
Update February 2024
In January, an external and independent valuation of the Selected Alternatives Fund's real estate portfolio was obtained, which in future will take place every six months. This procedure has been put in place to create additional confidence in the ongoing valuation of the fund.
The external valuation has resulted in a valuation of the property portfolio of 669.6 mDKK, which can be compared with the latest internal valuation from December of 672.0 mDKK. This is thus a marginal write-down of 0.35%, where three of the fund's properties have been revalued upwards, one is unchanged and one has been written down.
In addition to the existing property portfolio, the fund will take over 31 smaller homes on Theklavej in Copenhagen NV during February. The property on Theklavej is now completed and the first tenants are in the process of moving in. Leasing has gone well, with almost all apartments rented out at higher-than-budgeted rental prices. Including Theklavej, the property portfolio in Selected Alternatives consists only of properties in regular operation.
During the period, the fund investments in Copenhagen Infrastructure Partners and Brookfield GFT have worked to secure the basis for their many development projects for the macroeconomic situation regarding inflation, rising interest rates and various changes in European support schemes, which has been largely successful. New projects continue to progress to final investment decisions and capital calls are being made as planned.
The Selected RegEnergy Fund's first project in Frövi, Sweden, continue to progress according to plan. The first project in Frövi, Sweden, where tomatoes will be produced this spring, reached an important milestone in early February when the 100,000 m2 greenhouse came full circle for connected heat. This means that the recycled surplus heat from the nearby Billerud paper mill is now in distribution in the greenhouse. Thus the closed system where the greenhouse is heated and the cooled water is returned in a closed circuit is in place and connected. The size of the heating system is put into perspective by the fact that it took a week from the first heat connection until the entire pipe system was filled with hot water based on waste heat - the area of the greenhouse is equivalent to about 13 football fields.
The next project in the fund is technically an expansion of the first project, with an additional 100,000 m2 of greenhouse planned to be added. The aim is to use the same structure as for the first project in the form of the same operator, contractor, etc. to ensure a proven process with good economies of scale.
17.01.24
Update January 2024
2023 has been a challenging year for many types of alternatives, as the new interest rate regime has generally raised investors' return requirements, resulting in pressure on asset prices. This has been most pronounced in Denmark in areas such as real estate, where many property investors have had to make write-downs on properties - towards the end of the year, however, the pressure eased considerably as interest rates fell sharply.
The Selected Alternatives Fund's portfolio has not been immune to the pressure in the property market either, and at the beginning of the year we wrote down a few properties in the portfolio. However, a generally high occupancy rate throughout the year - at high rental prices - meant that the property portfolio delivered a positive return in 2023.
The fund's investments in green infrastructure are similarly positive. Here, the fund's investments in private equity funds with Copenhagen Infrastructure Partners and Canadian Brookfield have generally got off to a good start, and all funds are on track to fulfil expectations of returns of more than 10%. The funds are all still in the process of identifying the portfolio of investments, with the fund CIP IV being the furthest ahead with its investments and ahead of its own expectations.
The Selected RegEnergy Fund's first project in Frövi, Sweden, is progressing according to plan. The greenhouse in phase 1 has been built, and over the winter the final adjustments to the production equipment will be made with the aim of producing the first tomatoes in the spring.
In addition, work is underway on the final design of phase 2, which is expected to include a further 10 hectares of greenhouses that will also produce tomatoes, primarily for the domestic market in Sweden. Here, the final design for heat supply, electrical plan, etc. is being finalised, and the aim is for the initial work on levelling the area to start in late Q1 2024. If the project for phase 2 concludes as planned, the finished greenhouse is expected to be ready for production in late 2024/early 2025.
In parallel, dialogues with banks regarding final long-term financing for the projects in Frövi are ongoing with positive feedback from several parties. The intention is to include an external guarantor for the financing in the framework agreement, which will further reduce borrowing costs in the long term.
15.12.23
Update December 2023
For the fund's most recent directly owned property asset to date, the property on Theklavej in Copenhagen, the project is now nearing completion. Completed test apartments are being shown, and approximately half of the 31 apartments have signed leases. The construction has been on budget and on schedule, and there is still a high demand for this type of smaller apartments suitable for students and small families. Final handover is still scheduled for 1 March 2024.
In the operational property portfolio, it is widely felt that the anticipated rental potential can be realised, i.e. that relettings at changeover generally take place at a higher real rent than before, and the return is thus maintained or even improved. However, this should be compared to the fact that more effort has had to be put into the actual re-let during the period. This can be seen as a reflection of the somewhat volatile market situation, as described above. Overall, however, this means that the portfolio has behaved as expected during the period.
For the Selected Alternatives Fund's indirect investments in Brookfield, NIO (CIP IV), Viga RE, and CIP ETF, respectively, it is generally true that these have been able to mitigate the rising interest rate level and have not been bound by fixed-price agreements on contractors and/or supply agreements as was the case with developers such as Siemens and Ørsted, which had to shoulder considerable write-downs. In Brookfield, among others, the high interest rate environment has been seen as an opportunity to pick up additional opportunities that had become too expensive for the original owners who could no longer service their obligations.
In the Selected Regenergy Fund, the first project in Frövi, Sweden, is progressing according to plan. Here, the design of stage 2 of the project is nearing completion, where work is underway to produce up to an additional +9,000 tonnes of tomatoes annually by recycling waste heat from the nearby paper mill. It is still expected that the first tomato from stage 1 will be produced this spring.
17.11.23
Update November 2023
The fund's green infrastructure manager, Canadian Brookfield, has just released its Q3 report, which gives a good insight into this investment, where Selected Alternatives invested USD 11 million in 2021.
The fund, which is one of the world's largest green infrastructure funds, has commitments from institutional investors totaling USD 13 billion. The fund is still in the process of identifying investments within its investment areas: renewable energy, sustainable solutions and corporate green transition investments. By the end of Q3, the fund had identified investments totaling USD 11.6 billion out of the total USD 13 billion available.
The majority of the portfolio is invested in renewable energy, primarily through acquisitions of large developers of onshore wind, solar and battery parks. The projects are located all over the world with a focus on the US, Europe and India. The absence of offshore wind projects in the portfolio makes the portfolio resilient to the problems that the offshore wind sector is currently experiencing, such as those that have affected Denmark's Ørsted.
Another key investment area for Brookfield is carbon capture and storage. The fund has invested in a joint venture with California Resources Corporation (CRC), an independent oil and natural gas company in the US. This "dirty" company has committed to reducing its CO2 emissions through carbon capture and storage. Brookfield is financing these investments.
The fund is still in the investment phase and it is therefore early to assess the profitability of the underlying investments, but there are many indications that the fund is well on its way to realizing its target return of at least 10% p.a. As of 30/9, the fund has thus calculated an unrealized return of 15% on its assets.
In the Selected Regenergy Fund, the first sub-project in Frövi is still well underway. Work is underway to complete the connection of the waste heat supply in the greenhouses before winter sets in, and the installation of electrical installations and growlights is in progress.
The final planning of the exact start of production is currently being finalized in order to best target the optimal growth cycle for production, and the operator is also preparing to initiate the recruitment process for the required approx. 160 permanent employees. The construction process is also proceeding according to plan.
10.10.23
Update October 2023
Throughout Q3, the property portfolio has maintained a very low vacancy rate in the leases.
After the takeover of the completed property on Skejbygaardsvej in Aarhus at the end of August, the property on Theklavej in the Nordvest district of Copenhagen is the only project in the portfolio under construction. The first test homes at Theklavej will be shown during week 42, and final handover is scheduled to start in March 2024.
Regarding fund investments, in August it was decided to end the collaboration with FIH Partners regarding a total sale of the entire solar cell portfolio. Unfortunately, and contrary to expectations, the process has not led to an overall offer for the portfolio. It is therefore assessed that a total sale is not realistic at this time.
The process here has been affected by the generally significant increase in interest rates during the period, falling electricity prices and potential buyers' assessment of the complexity embedded in the solar cell portfolio.
The portfolio is now back in operation mode, and at the same time, efforts are being made to reduce the complexity of the portfolio over time, for example by reducing the proportion of partly owned solar projects. This will be done to optimize the possibility of a total sale of the portfolio in the future. Throughout the sales process the portfolio has been valued as an operating case, and the value of the portfolio as a result of the ongoing sales process has therefore not been revalued.
In the Selected Regenergy fund, the first project in Frövi, Sweden is progressing according to plan, and after the construction of the greenhouses, work has now begun on the interior of the greenhouses. In addition, a major milestone has been reached with the securing of a construction financing framework for the first 2 projects in Frövi. The construction financing is structured as green bonds and the total financing framework is 70m EUR.
15.09.23
Update September 2023
At the end of August, the fund took over the completed property on Skejbygaardsvej in Aarhus, where there is now a finished building with 42 smaller apartments. The initial rental process has been completed, and nearly all the 42 apartments have been leased at the projected rental rates. In connection with the takeover of the property, the fund's construction loan was repaid and replaced with traditional mortgage financing.
There is now only one development property in the portfolio – the property on Theklavej in Copenhagen, which is expected to be completed in the first quarter of 2024.
There has been considerable focus in the media on Ørsted's significant write-down of its offshore wind projects – and a resulting substantial drop in its stock price. Therefore, we reached out to our green infrastructure managers, Copenhagen Infrastructure Partners (CIP) and Brookfield, to inquire whether they are facing similar challenges to those of Ørsted.
This is not the case.
CIP informs us that in the current portfolio, in which Selected Alternatives is invested, CI IV has four offshore wind projects. Of these, the project in Taiwan (Zone 29) is already under construction, and agreements have already been reached on both the revenue side (fixed-price agreements for the sale of electricity production) and the expense side (primarily construction and financing costs). The other three projects are all young development projects, where neither the revenue nor the expense side has been locked in yet. Therefore, CIP has no projects in CI IV that, like Ørsted, are affected by a locked-in revenue side and an unlocked (and rapidly rising) expense side.
Brookfield states that they currently have no offshore wind projects in our portfolio but are ready to invest if the industry's issues with locking in revenue before expenses are resolved.
Both asset managers indicate that they view the current problems for some offshore wind projects as temporary and they continue to see good long-term opportunities in an offshore wind industry and that is a must-win in terms of achieving green transformation.
15.08.23
Update August 2023
In July, we have continued to see good progress in the fund's property development projects. We now expect that the Skejbygaardsvej project in Aarhus, where a property with 42 smaller apartments is being constructed, will be completed by the end of August, at which point it will be handed over to Selected Alternatives, and real estate financing will be secured.
During the summer, we have received a new valuation of the portfolio's solar projects. This has resulted in a slight write-down of the value of the solar portfolio. This is primarily due to the declining electricity prices, which lead to lower forecasts for future electricity prices, impacting the long-term budget for the portfolio negatively. Earnings continue to be based on approximately 85% fixed prices, but the decreasing price curve affects the uncovered portion of the portfolio as well as the covered portion of the portfolio after the expiration of the fixed price agreement – typically after 15-20 years.
In the Selected Regenergy fund, the first project in Frövi, Sweden, is progressing as planned. Currently, work is underway to complete the steel structure, which forms the framework for the approximately 10-hectare greenhouse for tomato production in the first phase of the project. The next step in the construction phase is to install the glass, which has just started.
15.06.23
Update June 2023
In May, we have seen continued positive development in the fund's property projects.
The townhouse project Blomsterrækkerne in Tilst near Aarhus, which was taken over in May, continues to experience good tenant interest, and the overall occupancy rate is now over 90%.
At the Skejbygaardsvej project in Aarhus, where a property with 42 smaller apartments is being built, the project is almost complete. Leasing is in full swing and transfer to the Selected Alternatives portfolio is expected after the summer holidays or in early autumn.
In the Selected RegEnergy fund, the fund's first project in Frövi, Sweden is progressing well. Here, the foundations have been laid for the greenhouses, in which 8,000 tonnes of tomatoes will be grown annually, and construction of the greenhouses themselves is expected to begin in the coming months. The first tomatoes are expected to be produced in Q1 2024.
12.05.23
Update May 2023
The sales process from the divestment of the solar portfolio is proceeding according to plan and preliminary bids from potential buyers are expected later in May.
The 101 terraced houses in Tilst near Aarhus (called Blomsterrækkerne) are now completed and the Fund has just completed the handover of the project. The project has been well received by the tenants with a broad tenant interest, resulting in an occupancy rate of 84% at the handover.
The Selected RegEnergy fund is also developing. We as manager, as well as the fund and its administrator, are continuously focused on the best possible return at the lowest possible risk. It has therefore been decided for the first planned project in the fund - the project in Frövi - to change the design of the production in "phase 2", i.e. the shrimp production, to a production of vegetables instead. It is currently being investigated whether it makes best business sense to roll out tomato production to the whole plant, whereby appropriate economies of scale could be realized, or whether a production of other vegetables would make better sense instead. We will update more on this once final agreements have been reached.
The decision is based, among other things, on the foundation's continuous assessment of the expected environmental footprint, where it became clear that a shrimp production at the specific location would not be able to maintain the strict environmental requirements the foundation sets itself as "best in class". The intention is now to move the development of shrimp production to a future project in the fund's pipeline, with a more suitable location.
The fund's return expectations remain unchanged at 20% IRR after tax and costs.
14.04.23
Update April 2023
The takeover of the Blomsterrækkerne real estate project in Tilst is nearing completion, with the last homes nearing completion and the occupancy rate now exceeding 65%. Takeover is expected to take place on May 1. In the real estate project, Theklavej, in Copenhagen NV, the contractor has now established the basement and cast the foundation, so the actual construction at height can now begin.
In the RegEnergy fund, the rocky ground has been leveled and the first pipelines for the transportation of hot water are also being established. The establishment of greenhouses is the next step.
Both CIP funds and the Brookfield fund have drawn commitments in March.
13.03.23
Update March 2023
During the month of February, the Fund's real estate exposures have been reviewed to ensure a correct valuation for the annual accounts. In general, interest rates have risen, which has increased the required rate of return on the properties. As a result, the value of the real estate portfolio has been adjusted. On the other hand, the operating performance of the real estate allocation remains solid and positive, partly offsetting the impairments.
It has now been announced that the Fund is seeking to divest its exposure to a global portfolio of solar parks and FIH Partners has been appointed as advisor on the sale. FIH Partners believes that there may be a possibility that the solar parks can potentially be sold at a favorable price for the shareholders and therefore continues the process. Interested buyers must submit indicative bids in Q2 2023, and if the bids are satisfactory, the transaction could be completed in Q4 2023.
However, this has no impact on the ongoing valuation of the investment, which will continue as before. Any gain on divestment will only be recognized as income once it is certain. At the same time, it is worth mentioning that the normal current valuation has resulted in a significant revaluation due to favorable developments in the underlying price drivers.
The Fund's development projects continue to progress as expected, and the foundations for greenhouses in the Frövi project are now gradually being completed.
Overall, the above effects offset each other, resulting in an unchanged price for the Fund in February.
15.02.23
Update February 2023
Operations from both properties and solar parks have been stable and positive as expected. Rent increases in the rental properties are now in place, and at portfolio level the rent has thus been raised by 3.5%. All leases have been reviewed individually to ensure that the rent increases do not provoke terminations and vacancies.
The Foundation's development projects are also progressing according to plan. The Foundation's investment in the Skejbygårdsvej project is well under way, and we expect handover from the contractor on 30 June 2023. The project's first show apartment is expected to be ready on 1 April, and advertising for letting has just begun. The project has its own website at www.skelagerhus.dk. We are now in the process of finalizing the accounts for the property projects, and in this connection, a decision will be made on adjustments to the price of the individual properties, which will include both the rent increases and slightly higher yield requirements.
The RegEnergy Foundation's Frövi project has now reached the stage where foundations are being laid for the many greenhouses.
16.01.23
Update January 2023
Operations from both properties and solar parks have been stable and positive as expected. We can now announce that the current allocation to solar parks via Solar Energy I is sought to be divested. Price indications have been received for a possible sale that significantly exceed the current valuation. A financial advisor has therefore been hired for the possible sale, and the project is expected to be sold to a major institutional investor or an energy company. Final clarification is expected by the end of 2023.
Currently, we are still exploring the possibility of investing in a larger development-stage wind project in a European country. This would increase the diversification of the portfolio in our efforts to generate high risk-adjusted returns for our investors.
14.12.22
Update December 2022
Operations from both properties and solar parks have been stable and positive as expected. Although a modest vacancy has occurred in 2 individual properties, we see that operations across the real estate projects are better than budgeted.
We are currently exploring the possibility of investing in a larger development stage wind turbine project in a European country. This would further increase the diversification of the portfolio in our efforts to generate high risk-adjusted returns for our investors.
14.11.22
Update November 2022
Operations from both properties and solar parks have been stable and positive as expected. Our investment in Brookfield Energy Transition Fund I has resulted in a capital call, so the first projects in this fund now look set to materialize.
In addition, the construction of the Blomsterrækkerne real estate project is progressing according to plan, and the project has even benefited from the weather to hold a groundbreaking ceremony for Phase 2 of the project in early November.
The investment in the WA3RM Foundation's first project in Frövi is also progressing according to plan, and a number of controlled blasts of bedrock have been carried out to make way for the project's greenhouses.
10.10.22
Update October 2022
Operations from both properties and solar parks have been stable and positive as expected. At the same time, minor write-downs have been taken on two of the property projects (Ndr. Højmarksvej in Silkeborg and Trøjborgvej in Aarhus) as a result of higher return requirements in the market. The two effects largely offset each other, which is why the price is unchanged compared to the end of August.
At the end of September, we have also been able to report the sale of the project property, Kirkebjerg Gårdhave, which has yielded a return of 50% over the almost two years the company has owned the project.
Until now, the NAV calculation for the solar parks has been based on the expected/modeled cash flows discounted by the expected return (IRR). Now that the solar park projects are completed, we will have realized figures for the earnings of all the projects to base the NAV calculation on. In the future, the NAV development from the solar projects will therefore have slightly larger fluctuations because it contains several moving parts, namely the development in the general required rate of return for solar parks, the electricity prices in a number of countries and the realized earnings figures.
12.09.22
Update September 2022
Operations have been stable as expected and, as planned, the Fund's return has been unaffected by the large fluctuations in the stock market. No significant changes were made to the portfolio during the month.
The government's planned 4% cap on rent increases is not expected to have a major impact on the Fund's real estate exposures. This is firstly because rents are raised with minimal vacancy in mind, and vacancy would increase too much if we as a landlord were to double the rent level - even though the leases would allow us to do so.
It is also worth mentioning that one of the fund's investments, CIP's Energy Transition Fund I, has now officially reached final closing and a total investment amount of EUR 3 billion has been secured. With the large increases in energy prices we have seen since the launch of the fund, we believe that this will be a rock-solid investment that our investors will benefit from over many years. The Fund's overarching theme is Power-To-X - in other words, the conversion of sustainably produced energy into other forms of energy or products whose production has so far been based on fossil fuels.
08.08.22
Update August 2022
Operations have been stable as expected and, as planned, the Fund's return has been unaffected by the large fluctuations in the stock market. No significant changes were made to the portfolio during the month.
11.07.22
Update July 2022
Investors should be aware that a dividend of 0.08 (i.e. approximately 3%) has been paid in this month. Operations have been stable as expected and, as planned, the Fund's return has been unaffected by the large fluctuations in the stock market. No significant changes were made to the portfolio during the month.
13.06.22
Update June 2022
Operations have been stable as expected and, as planned, the Fund's return has been unaffected by the large fluctuations in the stock market. Investors will receive a distribution of 0.08 (i.e. approximately 3%) in mid-June, and the value of the share will then (before returns) be written down to the same extent in the next NAV calculation.
09.05.22
Update May 2022
Operations have been stable as expected and, as planned, the Fund's return has been unaffected by the large fluctuations in the stock market.
Approximately 15% of the Fund's exposure to solar PV installations does not have a fixed price contract for the sale of the electricity produced. With the current very high electricity prices, this means that the solar panels are running above budget.
11.04.22
Update April 2022
Operations have been stable as expected.
The Foundation's project property, Kirkebjerg Gårdhave in Brøndby with 28 apartments, is now close to handover. Letting is expected to commence at the end of April, and it appears that the apartments can be let at a level slightly higher than budgeted. In addition, the project on Skejbygaardsvej in Aarhus with 31 planned apartments has now received local plan approval and is ready for construction.
The Foundation's portfolio of solar parks is now fully developed and in operation. At portfolio level, the Fund has been affected by lower solar radiation in Europe, where most of the parks are located, and thus fewer kilowatt hours have been produced than budgeted. On the other hand, very high electricity prices in the wake of the war in Ukraine have more than offset the lower production, so overall the operating result has been higher than budgeted.
14.03.22
Update March 2022
Operations have been stable as expected.
The Foundation's project property, Kirkebjerg Gårdhave in Brøndby with 28 apartments, is now close to handover. Letting is expected to commence at the end of April, and it appears that the apartments can be let at a level slightly higher than budgeted. In addition, the project on Skejbygaardsvej in Aarhus with 31 planned apartments has now received local plan approval and is ready for construction.
The Foundation's portfolio of solar parks is now fully developed and in operation. At portfolio level, the Fund has been affected by lower solar radiation in Europe, where most of the parks are located, and thus fewer kilowatt hours have been produced than budgeted. On the other hand, very high electricity prices in the wake of the war in Ukraine have more than offset the lower production, so overall the operating result has been higher than budgeted.
14.02.22
Update February 2022
There have been no changes in the portfolio and the company's projects have operated as expected.
However, the company's Board of Directors has signed an investment in a major real estate-related project in the hinterland of Aarhus. The project will have the same characteristics as our other real estate investments, as we are investing in relatively cheap square meters in a demographically favored area. Half of the project is already constructed and leased, and the other half will be constructed in the first half of 2023. This will ensure a stable and profitable operation in line with the company's purpose and investment policy.
10.01.22
Update January 2022
We can now announce that we have received confirmation of an investment in the Brookfield Global Transition Fund, which invests in infrastructure. The fund has an expected net IRR of 9.95% and will be primarily allocated to green infrastructure projects with lower risk than the other commitments we have made to Copenhagen Infrastructure Partners in the previous months.
13.12.21
Update December 2021
We have just announced the investment in Copenhagen Infrastructure Partners Energy Transmission Fund I, which we have high hopes for. The fund has an expected return significantly above our long-term target of 6% - 8%.
In the coming weeks, we expect to make another investment in green infrastructure. We will provide more information on this if it falls into place.
08.11.21
Update November 2021
At the beginning of October, we announced that we have invested directly in Copenhagen Infrastructure Partner's Energy Transmission Fund I. An investment that we have very high expectations for.
At the end of October, our project at Teglholmen was sold, which after only one and a half years had yielded a return of 50%.
Our intention is to build a stable portfolio with good opportunities to generate a solid and secure return on operations alone, but the increase in apartment prices in the capital meant that our capital could be better used in other projects with higher expected returns.
