Masdar is acquiring Saeta Yield, a wind developer with a 745MW portfolio, from Brookfield Renewable.
The transaction, worth €1.2bn, is expected to close around the end of 2024.
Saeta’s portfolio comprises 538MW of wind assets in Spain, 144MW of wind assets in Portugal and 63MW solar assets in Spain.
The deal also includes Saeta’s 1.6GW development pipeline.
The transaction excludes a regulated portfolio of 350MW of concentrated solar power assets, which Brookfield will retain and continue to operate.
Since acquiring the business in 2018, Brookfield has worked closely with Saeta’s management team to execute a business plan focused on divesting non-core assets, optimising its capital structure and positioning the business for growth through hybridisation, repowering, greenfield development and accretive tuck-in opportunities.
The sale is in line with Brookfield Renewable’s asset rotation strategy to recycle capital to fund growth activities.
Recently, Masdar also announced an agreement with Endesa to become a partner for 2.5GW of renewable energy assets in Spain, subject to regulatory approvals and other conditions.
UAE Minister of Industry and Advanced Technology, Masdar chairman and COP28 President Sultan Al Jaber said: “Masdar is committed to accelerating the delivery of clean energy capacity across the Iberian Peninsula and Europe.
“Representing one of Spain’s largest renewable energy transactions, this landmark deal with Brookfield Renewable builds on Masdar’s strong growth story, demonstrating our commitment to the EU’s wider net zero by 2050 target and unlocking new capacity.
“Matching words with actions, Masdar is further accelerating its ambitious growth plans, as well as supporting the delivery of the UAE Consensus ratified at COP28, to triple renewable energy capacity by 2030, enabling a just, orderly and equitable energy transition.”
Chair and head of transition investing at Brookfield Mark Carney said: “We are thrilled to conclude this important transaction with Masdar.
“As global leaders in clean energy development, Brookfield and Masdar will continue to be important players to accelerate the journey towards a net-zero economy.”