Kajima Europe, the pan-European real estate investment and development company, together with Griffin Real Estate, a leading private equity investment company, has announced the establishment of a joint venture to finance and develop renewable energy projects located in Poland. As part of the deal, the JV has acquired a 72 percent stake in PAD-RES, a leading developer in the clean energy asset space in Poland.
The companies plan to focus on the further development of PAD-RES’s renewable energy portfolio, which comprises investments in solar and wind projects at various stages of advancement, both in the development stage and ready to build, with an operational renewable capacity exceeding 500MW. The portfolio places the platform at the forefront of the country’s emerging renewable energy sector.
The JV will provide capital expenditure and development equity financing for the platform, which will develop the existing portfolio in 2021 – 2025, with a view to acquire new projects and pursue greenfield opportunities. Griffin Real Estate will act as a co-owner and investment manager of the platform. Mariusz Adamczewski, founder of PAD-RES, will remain as a minority investor and CEO.
The deal marks the first investment in Kajima’s ambitious strategy to move into the renewables sector in both the European Union and the UK. The EU has committed to cutting carbon emissions by at least 55 percent by 2030, compared to 1990 levels, aiming to become the world’s first carbon-neutral continent. Meanwhile, the UK government has announced a target to slash emissions by 78 percent by 2035 compared to 1990 levels.
Kajima is committed to pursuing sustainable investment and development opportunities across its portfolio, which includes a broad spectrum of real estate sectors.
Chris Gill, Projects & Investment Director at Kajima, said: “Renewable energy is a nascent sector in Poland, and we are hugely excited to be working with this partnership and to be among the first movers in what is set to be a key growth area for the country and the whole of the CEE region. The transfer to clean energy is not only about making a sound, long-term investment, but it’s about taking responsibility. The climate emergency is the greatest challenge facing our generation and switching to renewables is one of the most significant steps to be taken in reducing carbon emissions.”
Nebil Senman, the Managing Partner at Griffin Real Estate, said: “We are excited to expand our investing business through this partnership to explore opportunities in one of the most critical sectors of the modern world. This venture is a unique combination of partners that are able to build sustainable competitive advantage and further capitalise on the development of clean energy projects.”
Maciej Dyjas, the Managing Partner at Griffin Real Estate, added: “The acquisition of a controlling stake in PAD-RES, a developer that is well-poised for growth in the energy sector, creates a possibility to deploy equity and deliver profits in this fast-growing segment of the economy.”
Mariusz Adamczewski, founder and CEO of PAD-RES, said: “PAD-RES is a company with an established position on the Polish renewable energy market and with eleven years of experience in the preparation and execution of clean energy investments. Our greatest asset is a team of experts, thanks to whom we can manage operations at every stage of project implementation. I am convinced that gaining such strong partners, their organisational support and financing will translate into further dynamic growth of our company including more and more projects generating much needed clean energy.”
The JV partners were advised by Ernst & Young (commercial, financial and tax advice), Clifford Chance, Rymarz Zdort and DWF (legal advice), and Wind Prospect (technical advice).
