Acquisition of Walney
Acquisition of Walney
Greencoat UK Wind PLC ("UKW" or "the Company") is pleased to announce that it has agreed to acquire SSE's 25.1% interest in the Walney I and II offshore wind farms (together "Walney"), subject to the completion process which it expects will take place shortly, for a headline consideration of £350 million.
Walney is located approximately 9 miles off the Cumbrian coast and has a capacity of 367.2MW. Walney was constructed by Orsted and its two phases have been operational since July 2011 and June 2012. The wind farm receives 2 ROCs per MWh, has a load factor of 45.1% and is operated and managed by Orsted, the 50.1% owner. The remaining 24.8% is owned by PGGM.
The acquisition will be funded by UKW's acquisition facility, recently resized to £400 million. Following the acquisition of Walney, borrowings under the acquisition facility will amount to £380 million, bringing total borrowings to £980 million (35% of GAV).
Shonaid Jemmett-Page, Chairman of Greencoat UK Wind, commented:
"We are delighted to acquire SSE's 25.1% interest in Walney, which is a high quality, ROC accredited asset. The acquisition is our third offshore wind farm investment since listing in 2013, following our investments in Rhyl Flats and North Hoyle. Walney is a natural addition to our portfolio of operating UK wind farms and increases our net generating capacity to over 1GW for the first time."
Laurence Fumagalli of Greencoat Capital LLP added:
"We are pleased to make this investment in Walney, a large scale and high load factor offshore wind farm, which should deliver attractive investment returns. Walney is the latest addition to our portfolio of 36 ROC and CFD investments, of which offshore assets now comprise 17%. Looking ahead, we continue to see a strong pipeline of investment opportunities, both onshore and offshore, and remain committed to our disciplined investment approach."
The Company was advised by Jefferies International Limited and Norton Rose Fulbright LLP.
For further information, please contact:
Greencoat UK Wind PLC 020 7832 9425
Stephen Lilley
Laurence Fumagalli
Tom Rayner
Headland Consultancy 020 3805 4822
Stephen Malthouse
Rob Walker
Charlie Twigg
Notes to Editors:
Greencoat UK Wind PLC is the leading listed renewable infrastructure fund, invested in 37 operating UK wind farms with net generating capacity of 1,090MW. The Company's aim is to provide investors with an annual dividend that increases in line with RPI inflation (7.1p for 2020) while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cash flow and the prudent use of gearing.
UKW provides investors with the opportunity to participate directly in the ownership of UK wind farms, so increasing the resources and capital dedicated to the deployment of renewable energy and the reduction of greenhouse gas emissions.
UKW is managed by an experienced team at Greencoat Capital LLP, a leading European renewable investment manager with over £5 billion of assets under management. UKW is governed by a strong and experienced independent board.
UKW is incorporated in England and Wales and is a UK Investment Trust.
For more information about UKW, please visit http://www.greencoat-ukwind.com
For more information about Greencoat Capital LLP, please visit http://www.greencoat-capital.com
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