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Italy’s EstCapital debuts first renewable energy property fund

With an initial target of €80 million, the vehicle will invest in Italian real estate used to produce renewable energy.

Italian fund management firm EstCapital SGR and Bologna-based industrial group Maccaferri are launching the country’s first real estate fund targeting renewable energy producing real estate, according to a Reuters report.

The vehicle, RealEnergy, which is expected to become operative in September, will initially focus on renewable energy properties in Italy but may also invest in other countries. The fund is targeting an initial €80 million ($126 million) in capital with a cap of €200 million, according to the report.

Private equity firms have been actively targeting the renewable energies sector in recent months. In March, Platina Finance, a London and Paris-based private equity fund manager specializing in renewable energy investments, began construction on a solar energy plant in Toledo, Spain. The plant’s construction is being financed through Platina’s Mistral Energy II renewables project fund, managed by Mistral Energy II’s Spanish investment company, Anemoi Renovables.

In North America, one of Canada’s largest pension plans, the $125-billion Canada Pension Plan Investment Board (CPPIB) agreed in April to invest $200 million in Connecticut-based wind park company Noble Environmental Power, which develops, construct, owns and operates wind parks across the US.