February 1 (Renewables Now) - UK utility SSE Plc (LON:SSE) has agreed to sell a 49.9% stake in its 228-MW Stronelairg and 94-MW Dunmaglass onshore wind farms for a total consideration of GBP 635 million (USD 832m/EUR 726m).
The buyer of the stake is a partnership between renewable infrastructure fund Greencoat UK Wind Plc (LON:UKW) and a major UK pension fund. Greencoat Capital LLP manages both UKW and the investments of the pension fund.
The transaction calls for UKW to acquire a 35.5% stake in the two assets for a consideration of GBP 452 million, while the pension fund will take 14.4% for GBP 183 million. SSE will keep a 50.1% stake in the two wind farms.
Completion is scheduled for March 29, 2019.
Commissioned in December 2018, the 66-turbine Stronelairg wind farm is located near Fort Augustus in Scotland. Dunmaglass, on the other hand, consists of 33 turbines installed 15 miles south of Inverness and has been operating since December 2017. Both facilities will be receiving Renewable Obligation Certificates (ROCs) of 0.9 per MWh.
SSE said it will use up to GBP 200 million of the proceeds to finance a discretionary share buyback, while the rest will go towards the reduction of net debt. Following this sale, the group will have a renewables portfolio of around 4 GW, including a 40% share of the 588-MW Beatrice offshore wind farm that is currently under construction.
(GBP 1.0 = USD 1.310/EUR 1.144)