Renewable infrastructure fund Greencoat UK Wind plc (UKW) has agreed to acquire a 25% stake in Burbo Bank Extension offshore wind farm near Liverpool from Danish investor AIP.
UKW said the deal involves a partnership with a number of pension funds investing through Greencoat Renewable Income LP, a fund also managed by Greencoat Capital.
“UKW will acquire a net 15.7% stake in the wind farm for a total cash consideration (including cash and working capital) of £250 million,” said UKW.
“The acquisition is scheduled to complete on 30 November 2021.
“Burbo Bank Extension is located four miles north of the Wirral in North West England.
“It was commissioned in July 2017, comprises 32 Vestas V164 8.13MW turbines and has a grid capacity of 258MW.
“Burbo Bank Extension, has a load factor of 43.8% and benefits from a CFD priced at £176.57/MWh (real 2021) until 31 March 2032.
“Orsted will provide operation and maintenance and management services to the wind farm.
“The acquisition will be funded using the company’s revolving credit facility, cashflow and the proceeds of a new equity raise launching today …”
UKW chair Shonaid Jemmett-Page said: “We are delighted to announce our investment in Burbo Bank Extension, a high load factor, CFD accredited offshore wind farm.
“This transaction, once completed, will add another high quality asset to our portfolio which will stand at 41 wind farm investments, with a generating capacity of over 1.3GW.
“This will be our second CFD investment, complementing the investments we are making into merchant assets, and will sit alongside our 38 ROC investments as part of a balanced portfolio.
“Anticipating our commitments over the next 18 months, the equity raise launched today will enable the company to pay down debt and continue to capitalise on the strong pipeline of opportunities in the UK wind farm market, both onshore and offshore.
“Given the size and scale the company has attained over recent years, UKW is well placed to make value-accretive acquisitions and further enhance returns for our shareholders.”