Oxford Sustainable Group launches €200 million renewable energy fund

August 25, 2009 at 1:24 pm | Posted in Member Projects, News from Members | Leave a comment
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oxfordThe RoGBC member Oxford Sustainable Group, the leading renewable/sustainable developer, announced the launch of The Oxford Renewable Energy Fund 9 (OREF 9) , a closed-ended fund to be listed on the Channel Island Stock Exchange (CISX) seeking to raise €200 million.  OREF 9 aims to add value, achieve capital growth and spread risk though investment in and development of a range of renewable energy projects primarily in Finland, Romania and Estonia.

The fund has a duration of five years and aims to deliver a low-risk 20% per annum return to investors after all costs and fees (net). The return requires zero bank financing, meaning high returns with low risk in the current financial market turmoil. The final development value of the projects generated could reach €2 billion.

The fund is targeting institutional and high net worth investors. The market in Central and Eastern Europe has performed well in the past compared to Western Europe and is expected to again perform strongly in the medium term. European and Global demand for energy is high and forecast to rapidly increase. Within Europe there is a strong government commitment to fixed targets and high subsidies to generate a minimum percentage of energy using renewable sources – some countries need to double their renewable capacity by 2020.

The Oxford Sustainable Group will select and manage OREF 9 projects through a process of careful and detailed analysis, due diligence and active management; this means that investments are selected based on the considerable value that the Oxford team can be add to them, taking account of project specifics, local area effects, general planning, political possibilities and market situation/trends. This is the same investment philosophy which Oxford’s previous eight investment opportunities have followed. To date, Oxford’s independently audited projects have delivered over 50% per annum on average.

Hadley Barrett, CEO, Oxford Sustainable Group said: “We have an impressive track record and years of experience leading our peers in this area. We are therefore delighted to launch OREF 9. In the current climate, the new fund represents a unique opportunity for sophisticated investors to generate strong returns. Our investment model is focused on adding value and does not count on passive asset appreciation. Added to our sustainable approach, we therefore outperform our peers, while preserving capital, even in a falling market, and creating value for our investors. The demand for renewable energy today vastly outstrips supply and the demand is only going to increase, so we are confident that investors are perfectly positioned to make excellent, risk-adjusted returns while contributing to social and economic future stability. I am sufficiently sure about this fund to kick it off with 20m Euro of my own money.“

The Oxford Sustainable Group goes further than other ethical/SRI methodologies in the market by using a proprietary 360 degree sustainable approach. This sustainable approach takes into consideration the effects of Oxford projects on all stakeholders.  Instead of focusing only on an “ethical” formula derived from narrow investment criteria, Oxford is concerned with how a project satisfies the needs of our investors, the environment, society, local residents and the broader economy.

The Oxford Sustainable Group was recently awarded CarbonNeutral status – the only CarbonNeutral renewable energy developer in the CEE region.

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