Greencoat UK Wind (UKW) has acquired the remaining 50% interest in the Braes of Doune wind farm from funds managed by the infrastructure team of the international business of Federated Hermes for a consideration of £48.1m.
Braes of Doune is located in Stirlingshire, Scotland, and comprises 36 Vestas V80 2MW turbines with a total capacity of 72MW.
The wind farm was commissioned in June 2007 and receives 1 ROC per MWh.
UKW now owns 100% of the wind farm, having acquired its original 50% stake at IPO in March 2013.
The company has also entered into an agreement with Banks Renewables Limited (Banks Renewables) to acquire a 49.9% interest in Kype Muir Extension wind farm for a headline consideration of £51.4m, to be paid once the wind farm is fully operational (target Q4 2022).
UKW will also provide construction finance of up to £47m, with first utilisation expected in July 2021.
Kype Muir Extension is located in South Lanarkshire, Scotland and will comprise 4 Nordex 3.6MW turbines plus 11 Nordex 4.8MW turbines, with a total capacity of 67.2MW.
The wind farm is subsidy free and will benefit from a 15 year fixed power price agreement with a utility.
Following its recently completed share placing, raising gross issue proceeds of £198m, and following its acquisition of the incremental interest in Braes of Doune, the Company intends to repay £160m of its revolving credit facility (RCF).
This would reduce borrowings from the RCF from £400m to £240m.
Together with £700m of term debt, total borrowings will be £940m, equating to 28% of Gross Asset Value.
Greencoat Capital’s Stephen Lilley said: “We are delighted to acquire the remaining 50% of Braes of Doune, a high quality, ROC-accredited asset, in which we have been invested since March 2013.
“We are also excited to be partnering with Banks Renewables on Kype Muir Extension and look forward to acquiring 49.9% of the project in Q4 2022.”