Greencoat UK Wind has agreed to acquire a 25% stake in the 258MW Burbo Bank 2 offshore wind farm from AIP.
The acquisition is in partnership with a number of pension funds investing through Greencoat Renewable Income, a fund also managed by Greencoat Capital.
Greencoat UK Wind will acquire a net 15.7% stake in the wind farm for a total cash consideration (including cash and working capital) of £250m.
The acquisition is scheduled to complete on 30 November 2021.
Burbo Bank 2 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, has a load factor of 43.8% and benefits from a CfD priced at £176.57 per megawatt-hour (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, further details below.
Greencoat UK Wind is also today announcing an equity raise through a placing, open offer, intermediaries offer and offer for subscription.
The prospectus for the issue is to be published in the coming days.
The net proceeds from the issue are expected to be used to fund the Burbo Bank Extension stake acquisition and repay amounts drawn under the company’s facility agreement.
Shonaid Jemmett-Page, chairman of Greencoat, said: “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.”