Canada Pension Plan Investment Board (CPP Investments) is selling its 24.5% stake in two German offshore wind assets, Hohe See and Albatros.
The wind farms are located approximately 100km from the German North Sea coast and began operating in 2019 and 2020.
Together, the wind farms produce a combined 2.5-million-megawatt hours of electricity, supplying energy to more than 700,000 households.
CPP Investments, through its wholly owned subsidiary CPPIB Renewables Europe, acquired its interests in the assets as development projects from Enbridge in 2018 as part of a broader renewable power partnership that continues in other areas of Europe and North America.
CPP Investments’ net proceeds from the transaction, after certain costs and adjustments, are expected to be C$374 million.
The terms were agreed with a wholly owned subsidiary of Enbridge. The transaction is subject to customary conditions and is expected to be complete by the end of 2023.
“Since our initial investment in these assets in 2018, the European offshore wind market has continued to mature and we’ve realised solid returns during our ownership,” said Bill Rogers, Managing Director, Global Head of Sustainable Energies, CPP Investments.
“The renewable energy sector, and offshore wind specifically, remains an important investment strategy for us, and we will continue to seek opportunities in the sector that best fit the scale and flexibility of our capital.”