Orsted has signed an agreement to divest 50% of the Gode Wind 3 Offshore Wind Farm off Germany to funds managed by Glennmont Partners.
The value of the transaction is €473m, which comprises the price for the acquisition of the 50% ownership share of the offshore wind farm and a commitment to fund 50% of the construction of Gode Wind 3.
Gode Wind 3 has a capacity of 253MW and was awarded to Orsted in 2017 and 2018 as two separate projects with a weighted average feed-in tariff of €81 per megawatt hour (MWh).
The wind farm is under construction alongside the Borkum Riffgrund 3 Offshore Wind Farm, where Orsted and Glennmont are already 50/50 owners. It is expected to enter into commercial operation in 2024.
Furthermore, Glennmont also co-owns Orsted’s Gode Wind 1 Offshore Wind Farm.
Glennmont is one of Europe’s largest fund managers, focused exclusively on investments in clean energy infrastructure.
It is owned by Nuveen, a TIAA company and global asset manager with over $1.1tn in assets under management and a top 20 infrastructure manager globally.
Peter Obling, Head of Central Europe at Orsted, said: “We continue to see strong investor interest for offshore wind farms, and we’re very pleased to once again welcome Glennmont as a co-owner of one of our German offshore wind farms.
“As the leading developer of offshore wind in Germany, Orsted is committed to being a central part of the German Energiewende, and we’ll continue to work to support the green transformation in this strategic market.”
Francesco Cacciabue, CFO and Partner at Glennmont Partners from Nuveen, said: “This third investment in German offshore wind with Orsted continues and strengthens our successful partnership.”