GLIL Infrastructure, the specialist asset manager set up by Local Government Pension Scheme (LGPS) funds, has expanded its partnership with Bluefield Solar in a deal worth £38m.
GLIL is to acquire a 75% stake in a portfolio of solar energy and battery storage assets, with the capacity to generate approximately 250 megawatts. The remaining 25% is owned by the Bluefield Solar Income Fund, a listed investment vehicle dedicated to solar power assets.
It is the third transaction between the two organisations since they established a partnership, known as Lyceum Solar, in December 2023. So far, they have invested in assets with a total power capacity of 626 megawatts across the UK, with a combined purchase price of more than £660m.
According to a statement from the two companies, all seven sites in the latest transaction have grid connections, and several have secured ‘contract for difference’ contracts – a key government-backed initiative to incentivise renewable energy development.
Jing Zhao, deputy portfolio manager at GLIL Infrastructure, said the latest transaction had helped complete “what is now one of the largest and most diverse solar and battery portfolios in the UK”.
“These assets also strongly align with our strategy to increase our exposure to development and construction opportunities, which allows us to really add value by leveraging our experience in operational energy,” Zhao added.
Neil Wood, partner at Bluefield Partners, which manages the assets of the listed Bluefield fund, added: “This transaction underscores the growing role of renewables as core infrastructure assets in the UK.
“By combining long-term capital with Bluefield’s operational expertise, we are delivering scalable solar and storage projects that enhance grid resilience and support energy independence. For Bluefield Solar, this partnership reflects a commitment to disciplined growth, inflation-linked returns, and capital deployment into assets that align with national priorities for decarbonisation, industrial productivity, and energy security.”
GLIL was established in 2015 and invests on behalf of LGPS funds and pools including Local Pensions Partnership Investments, Greater Manchester Pension Fund, Merseyside Pension Fund, and West Yorkshire Pension Fund, as well as defined contribution master trust Nest.
L&G and Federated Hermes complete ‘landmark’ property funds merger
Federated Hermes has merged its Property Unit Trust into Legal & General’s (L&G) Managed Property Fund, creating a £4.7bn real estate investment vehicle.
In a joint statement, the two asset managers described the merger as a “landmark transaction that reflects the focus of both firms to act in the best interests of investors”.
L&G, which will continue to manage the enlarged L&G Managed Property Fund, said the deal would “unlock the potential for L&G to deliver greater scale and liquidity while maintaining long-term performance for all investors”.
The L&G Managed Property Fund is an open-ended fund that allocates to real estate assets across the UK. The Federated Hermes fund is similarly invested solely in UK assets.
Michael Barrie, head of real estate for the UK and Europe at L&G, said: “Bringing together two of the UK’s most established property funds is a significant step in our strategy to strengthen our market position. It reinforces the collaborative approach that underpins L&G’s private market platform growth, our credibility as a partner of choice for consolidation opportunities, and our ability to execute innovative solutions.”
Mark Russell, chief investment officer at Federated Hermes Real Estate, said the decision to merge away the Property Unit Trust reflected the changing needs of his firm’s clients.
“Our goal throughout has been to deliver a solution for our investors that offers continued market exposure to the majority, where feasible, while enhancing both stability and liquidity over the long term,” he said.
Open-ended property funds have been under pressure in recent years after high levels of redemptions, prompted by market shocks including Brexit and the Covid-19 pandemic, led to some asset managers having to temporarily close their funds in order to preserve liquidity and generate additional cash.
