Infrastructure investor Infratil and the New Zealand Superannuation Fund have combined to buy into a European based renewable energy company.
Infratil will pay 88 million euro ($NZ150m) for a 40 percent share of the Zurich-based Galileo Green Energy. The Super Fund, Australia's Commonwealth Superannuation Corporation, and an investment managed by Wellington investment company Morrison & Co., will each buy 20 percent.
The new entity Galileo will invest in wind and solar power production and storage projects across Europe. It had already reached a deal to develop wind farms in Ireland.
The Super Fund said renewable energy was in line with its investment values.
"As a long-term investor, we see energy and infrastructure developments as important investment opportunities that provide attractive risk adjusted returns, especially where they fit with our views around sustainability and climate change," Super Fund head of external investments and partnerships Del Hart said.
"[The Galileo investment] will help us access this market and the trend to clean energy in Europe."
Morrison & Co, the manager of Infratil, will manage the Galileo investment on behalf of the group.
"Europe presents an opportunity to invest in one of the worlds largest renewables markets, with significant opportunity for diversification and growth, in a sector Infratil has significant experience investing in," Morrison & Co's head of Europe Jason Boyes said.
Infratil and the Super Fund have a track record of joint investments, and are currently partners in a North American renewable energy company.
Infratil also specialises renewable energy investments, as well as being half owner of telecommunications concern Vodafone New Zealand.