GRP Agrees to Acquire 105.1MW Wind Farm Assets

RNS Number : 3912A

Greencoat Renewables PLC

11 September 2018

 

Greencoat Renewables agrees to acquire 105.1MW operating wind farm assets from Coillte

Dublin, London, 11 September 2018: Greencoat Renewables PLC ("Greencoat Renewables") is pleased to announce an agreement to acquire the majority of Coillte's shareholdings in its portfolio of operating wind generation assets, for a total consideration of €136.1 million. The portfolio of four windfarms comes with long term fixed rate project finance and has an overall net enterprise value of €281 million.

Greencoat Renewables will acquire the entirety of Coillte's 50% stakes in Raheenleagh, Cloosh Valley, and Castlepook wind farms; and acquire a 25% stake in Sliabh Bawn wind farm with Coillte retaining 25% ownership. The investments total a net generating capacity of 105.1MW, taking Greencoat Renewables' total installed capacity to 299MW.

Coillte's portfolio was co-developed with SSE, ESB and Bord Na Mona, who each remain joint venture partners in their respective wind farms and retain certain rights in relation to the transaction. The assets are of very high quality with high load factors, experienced utility operators, and managed under a suite of long-term contracts. The assets also benefit from 13+ years of fixed-floor power prices under REFIT 2, and options to extend the land leases to 50 years.

Greencoat Renewables' investment manager, Greencoat Capital, has a long track-record of partnerships with SSE and ESB.

In line with its strategy, the sale allows Coillte to recycle capital, and continue to develop its extensive pipeline of over 25 projects, and 1GW of wind capacity in Ireland.

The acquisition, which is expected to complete by November 2018, will be funded by Greencoat Renewables' existing Revolving Credit Facility.

The acquisition comprises:

§ 50% stake in Raheenleagh wind farm - Located in County Wicklow; 11 Siemens 3.2MW turbines with a gross capacity of 35.2MW; investing alongside ESB which owns the remaining 50%.

§ 50% stake in Cloosh Valley wind farm - Located in County Galway; 36 Siemens 3.0MW turbines with a gross capacity of 108MW; investing alongside SSE Renewables which owns the remaining 50%. Cloosh Valley is part of the Galway Wind Park, co-developed by SSE and Coillte and Ireland's largest and best performing wind farm, generating more green energy than any other wind generation site on the island.

§ 50% stake in Castlepook wind farm - Located in County Cork, comprising 14 Nordex N90 2.5 MW turbines with a gross capacity of 33.2MW; investing alongside ESB which owns the remaining 50%.

§ 25% stake in Sliabh Bawn wind farm - Located in County Roscommon; 20 Siemens 3.2MW turbines with a gross capacity of 64.0MW; investing alongside Bord Na Mona which owns 50%, and Coillte which owns 25%.

Bertrand Gautier, Partner at Greencoat Capital, said: "We are delighted with this investment into one of Ireland's premier infrastructure portfolios, and alongside some of the country's most experienced and trusted utilities. As a strategic scale asset, this is another example of our ability to find value across the entire market, and allows Coillte to recycle its capital to build out their significant development portfolio. We look forward to deepening our strategic partnerships with SSE, ESB, Bord Na Mona, and Coillte itself."

Fergal Leamy, Coillte, said: "Today's announcement demonstrates the quality of the renewable energy assets which we have developed over the last four years.  Greencoat Renewables PLC has an excellent track record and expertise in the sector and has established a strong presence in Ireland.  This sale clearly demonstrates the value we can create from every hectare of land we own to ultimately deliver enhanced value to our shareholder.  The proceeds from the sale will be reinvested in the business to generate more value and to enhance the overall value of the Group.  Over the coming months we will announce details of how we plan to develop in excess of 1,000 MW of renewable energy generating capacity over the next 10 years across a pipeline of 25 projects we have identified on the Coillte estate."

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For further details contact:

Greencoat Capital LLP (Investment Manager)
Bertrand Gautier Paul O' Donnell Tom Rayner					[phone]
FTI Consulting (Investor Relations & Media)
Jonathan Neilan					[phone]
Melanie Farrell					[e-mail]
Davy Corporate Finance (Broker, NOMAD and ESM Adviser) Fergal Meegan Barry Murphy Ronan Veale					[phone]
RBC Capital Markets (Joint Broker) Matthew Coakes Jonathan Hardy					[phone]

About Greencoat Renewables PLC

Greencoat Renewables PLC is an investor in euro denominated renewable energy infrastructure assets, and is focused on the acquisition and management of operating wind farms in Ireland. It is managed by Greencoat Capital LLP, an experienced investment manager in the listed renewable energy infrastructure sector.

About Coillte Cuideachta Ghníomhaíochta Ainmnithe

Coillte, Ireland's largest commercial forestry company, was established by the State in 1989 and has responsibility for management and commercialisation of an estate of some 440,000 hectares reflecting approximately 7% of the land mass of Ireland.

Coillte is developing future renewable energy projects of which in excess of 1,000 MW have been identified and are under active development.

 

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