Greencoat to buy 42 MW of UK wind farms for GBP 96m

Jun 25, 2014 - Renewable energy fund Greencoat UK Wind Plc (LON:UKW) said today it had agreed to buy two UK wind farms totaling 42.4 MW for GBP 96.2 million (USD 163m/EUR 120m).

Under the terms of the first deal, Greencoat will buy the 18.4-MW Kildrummy wind park in Aberdeenshire, Scotland for GBP 43.3 million, excluding cash balances. The seller is BayWa re renewable energy GmbH, a unit of German agriculture and energy group BayWa AG (ETR:BYW6).

The second acquisition agreement is with Velocita Energy Developments Ltd and calls for Greencoat to take possession of the 24-MW Maerdy wind farm in South Wales for GBP 52.9 million, again excluding cash balances.

The UK investment trust noted that its net generating capacity will climb to 226.4 MW once the two transactions are completed on 30 June 2014. It plans to use its available cash and an existing acquisition debt facility to pay for the purchases. In total, the fund will have investments in 12 UK wind parks.

The Kildrummy and Maerdy wind farms have estimated net load factors of 35.7% and 32.2%, respectively. They were commissioned in May 2013 and August 2013. Both receive 1 Renewable Obligation Certificate (ROC) per MWh.

(GBP 1.0 = USD 1.700/EUR 1.245)

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