Swiss Life Asset Managers to acquire Otovo ASA’s leading solar portfolio in Norway and Sweden

Swiss Life Asset Management Ltd (“Swiss Life Asset Managers”) has agreed, on behalf of one of its managed collective investment schemes, to acquire a portfolio of decentralized solar PV leasing subscriptions (“the portfolio”) in Norway and Sweden. Under the capex NOK 600 million / EUR 52.5 million transaction Swiss Life Asset Managers will buy 100 percent of the shares in the owner Otovo ASA group (“Otovo”)’s portfolio in Scandinavia.

The portfolio consists of approximately 1.600 solar rooftop leasing subscriptions, of which an equivalent number is planned to be constructed in 2024. The residential solar systems will provide green and affordable energy to homeowners for more than 20 years. The systems are substantial by European standards, averaging 9.14 kWp, typically generating 8.000-10.000 kWh per year, thus generating between 20 and 50 percent of the Norwegian and Swedish homeowners’ yearly energy needs.

Otovo has consented to sell its portfolio for an agreed price of NOK 229 million / EUR 20 million at closing, with further transfers of assets as they are built.

At the time of closing, the portfolio will hold the ownership to all subscription assets originated by Otovo in Norway and Sweden until the end of August 2023 and be entitled to all cash flows pursuant to these assets. Otovo continues to enter into new subscription agreements on behalf of the portfolio and has agreed to sell all solar rooftop projects originating in Scandinavia to the seller until the end of 2024 on the same terms, with a possible extension to September 2025 in case of delays in installation. The portfolio size will be 3.000-3.500 systems at the end. Swiss Life Asset Managers and Otovo have the intention to develop their partnership in order to comprise assets beyond Scandinavia from 2024 onwards.

Closing is expected in Q4 2023.

– Andreas Thorsheim, Chief Executive Officer of Otovo, says: “We are excited to announce this strategic agreement with Swiss Life Asset Managers. They are a solid partner and an engaged driving force of the energy transition. This transaction is the first of its kind in Scandinavia and confirms the attractiveness of rooftop solar as a financial asset class when done at scale, in addition to its being the fastest growing segment of the European solar energy buildout.”

- Dr. Marc Schürch, Head of Renewable Energy International at Swiss Life Asset Managers, says: “We are happy to announce our acquisition of Otovo’s solar subscription portfolios in Norway and Sweden. This allows our investors to access the fast-growing market of rooftop solar with an innovative new business model. Otovo is well positioned across Europe and aims to further scale the platform, providing a high level of diversification. Moreover, this transaction reflects our commitment to delivering value to our investors beyond traditional renewable investments. We look forward to building a strong and long-term partnership with Otovo and building upon the success of this transaction in order to accelerate the energy transition.”

Swiss Life Asset Managers

Swiss Life Asset Managers has more than 165 years of experience in managing the assets of the Swiss Life Group. This insurance background has exerted a key influence on the investment philosophy of Swiss Life Asset Managers, which is governed by such principles as value preservation, the generation of consistent and sustainable performance and a responsible approach to risks. Swiss Life Asset Managers offers this proven approach to third-party clients in Switzerland, France, Germany, Luxembourg, the UK, Italy and the Nordic countries.

As at 30 June 2023 assets under management for third-party clients amount to EUR 114.8 billion. Together with insurance assets for the Swiss Life Group, total assets under management at Swiss Life Asset Managers stood at EUR 265.8 billion. Swiss Life Asset Managers is a leading real estate manager in Europe1. Of the assets totalling EUR 265.8 billion, EUR 91.7 billion is invested in real estate. In addition, Swiss Life Asset Managers, in cooperation with Livit, manages real estate totalling EUR 21.6 billion in value. Total real estate assets under management and administration at the end of June 2023 thus came to EUR 113.3 billion.

Swiss Life Asset Managers employs more than 2200 people in Europe.