Tritax, an UK's specialist independent fund manager, announced on July 1st, 2013, the launch of the Tritax Renewable Energy Fund No.1, a fund designed to address investors' continuing demand for long, secure, inflation proof income streams, whilst focusing on capital preservation.

This latest launch sees Tritax make a strategic move to broaden its sector focus to include renewable energy, in particular providing investors with an opportunity to invest in a de-risked portfolio of four individual 500kW wind turbine developments, where the development risk is assumed by the developer and the majority of the income is secured by a 20 year contract, linked to RPI with the UK Government under the Feed-in-Tariff (FiT) Scheme.

Investors will benefit from a commercial alliance between Tritax and G2 Energy, the UK market leader in terms of engineering and construction of 500kW turbine sites, who have used their deep sector knowledge to meticulously identify and mitigate risks.

This annuity type investment is targeting an average annual cash distribution of c.15.6% pa over a 6 year fund life, with a targeted total return (IRR) of c.16.5% pa (i.e. an indicative total return of c. £181,000 per £100,000 invested).

Both the average annual cash distribution and total targeted return are further enhanced by capital allowances to an average gross equivalent of c.26.8% pa and to an average gross equivalent of c.22.9% pa respectively (to a 45% taxpayer).

Henry Franklin, Tritax Partner commented:

"We have a 17 year track record in creating innovative, efficiently structured, well managed opportunities with a focus on providing quality long dated income streams, so this sector, which combines attractive investment returns with lower risk business models and Government supported income streams, is a natural extension to our business model.

Now is the right time to exploit the long term business potential for renewable energy as it moves from a niche to more mainstream offering, allowing investors to benefit from a much more "tried and tested" investment class, Government supported income, proven technologies, experience, track record and meaningful growth potential."

Source: Tritax