Tritax has launched a renewable energy fund which will invest in four individual 500 kilowatt wind turbine developments.
The Tritax Renewable Energy Fund No.1 target an average annual return of around 15.6 per cent over its six-year life.
Tritax will work with G2 Energy, which specialises in the engineering, development and construction of 500kW turbine sites, on the fund. These developments fall into the most profitable band of the Government’s feed-in-tariff scheme.
The firm claims the fund will offer a ”secure and inflation proof income stream whilst focusing on capital preservation”.
Tritax partner Henry Franklin says: “The renewable energy sector is a natural extension of our business model.
”Now is the right time to exploit the long term business potential for renewable energy as it moves from a niche to a more mainstream offering allowing investors to benefit from a much more ‘tried and tested’ investment class, Government supported income, proven technologies, experience, track record and meaningful growth potential.”
Tritax says the majority of the income for the fund is secured by a 20-year RPI-linked contract with the government under the feed-in-tariff scheme.
The government feed-in-tariff scheme has been introduced to benefit those generating electricity through solar panels or a wind turbine by paying a set amount for each unit, in kilowatts, of electricity generated.
The Tritax Renewable Energy Fund No.1 has a minimum investment of £20,000.