Mitsubishi HC Capital and Brookfield to Jointly Launch Renewable Energy Business

Mitsubishi HC Capital Inc. and Brookfield Asset Management Ltd. have signed a shareholders' agreement to establish a joint venture (JV) focused on the renewable energy business. Both companies will hold a 50% stake in the JV, which will acquire large-scale renewable energy assets in Europe to accelerate growth in the global market.

The JV aims to become a highly competitive renewable energy investment company by integrating Mitsubishi HC Capital's financial and business investment capabilities with Brookfield's asset management expertise and its track record in developing and operating renewable energy projects.

Concurrently with the shareholders' agreement, the JV has also entered into a sales and purchase agreement to acquire renewable energy assets currently operated in Europe by a renewable energy provider affiliated with Brookfield.

The asset portfolio consists of large-scale solar and onshore wind power assets spread across six European countries (the UK, Spain, Sweden, Finland, France, and Ireland), with a total generation capacity of approximately 570MW. The acquisition price is approximately €400 million (about ¥74.3 billion).

By acquiring a geographically diversified portfolio in the European market, where electricity demand is expected to grow, the JV will establish a substantial business foundation early on. Furthermore, many of the assets being acquired have long-term power purchase agreements with offtakers holding investment-grade ratings, which is expected to secure stable, long-term cash flows. This will create a revenue base with a degree of resilience to market fluctuations and support sustainable earnings growth.

The establishment of the JV and the acquisition of the assets are scheduled to commence once necessary approvals and other conditions are met, which is currently anticipated by August 2026.

Leveraging this JV, Mitsubishi HC Capital and Brookfield will accelerate the acquisition of prime business investment opportunities in global markets, including the US and Australia, aiming to strengthen their renewable energy business and achieve sustainable growth in corporate value.

Hayato Shinada, Managing Executive Officer and Head of Overseas Environmental Energy Business Division at Mitsubishi HC Capital, commented, "This initiative is a growth investment that falls under our 'investment in high-profitability fields' as part of the business portfolio transformation in our Medium-Term Management Plan 2028. By combining our cultivated expertise in finance and business investment with Brookfield's asset management capabilities and the development and operational strengths of partners like European Energy, we will work to expand our business foundation and achieve stable operations. The importance of renewable energy has been increasing from an energy security perspective, and we will seize growth opportunities in the global market, starting from Europe, to enhance our corporate value over the medium to long term."

Ignacio Paz-Ares, Deputy CIO of Brookfield's Energy Division, stated, "We have partnered with Mitsubishi HC Capital to launch a large-scale renewable energy platform based on a diversified initial portfolio of high-quality operational assets. This platform has a framework that allows for additional investments into a pipeline of renewable power generation assets, providing a strong foundation for growth and expansion in Europe and Australia."