Greencoat to take control of 87.5 MW of UK wind parks

Aug 20, 2014 - Renewable energy fund Greencoat UK Wind Plc (LON:UKW) said today it will acquire 51.6% stakes in four UK wind parks totalling 87.5 MW for a combined GBP 90.6 million (USD 150.6m/EUR 113.2m).

Through a joint holding company, Greencoat and a fund managed by Swiss Life Asset Managers will take full control of the four wind farms from their developer -- US utility The AES Corporation (NYSE:AES). Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities SCA will end up holding 48.4% in each of the four wind parks.

The transactions, which will involve the prepayment of existing debt, are seen to close on August 22. Greencoat noted it will use its available cash and debt to pay for the stake purchases.

The pair will take over the 20.5-MW Sixpenny Wood wind park in the East Riding of Yorkshire and the 16.4-MW Yelvertoft wind farm in Northamptonshire. The two facilities have forecast net load factors of 31% and 28.6%, respectively, and have been operational since July 2013.

Also, the parties’ joint venture will acquire the 22-MW North Rhins plant in Dumfries and Galloway as well as the 28.6-MW Drone Hill wind farm in the Borders. Their respective forecast net load factors amount to 37.8% and 23.7%. The North Rhins site has been operational since December 2009, while the Drone Hill facility started activities in August 2012.

Each one of the four wind parks receive 1 Renewable Obligation Certificate (ROC) per MWh of generated electricity.

Commenting on the deal, Greencoat’s chairman Tim Ingram said that it will expand the fund’s investment portfolio to include 16 UK wind parks with total capacity of 271.5 MW.

(GBP 1.0 = USD 1.662/EUR 1.250)

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