Agreement to acquire South Kyle wind farm
27 APRIL 2020
Greencoat UK Wind PLC
Agreement to acquire South Kyle wind farm
Greencoat UK Wind PLC ("UKW" or the "Company") is pleased to announce that it has entered into an agreement with Vattenfall Wind Power Ltd ("Vattenfall") to acquire South Kyle wind farm for a headline consideration of £320 million, which will be due upon completion, scheduled for Q1 2023, once the wind farm commences commercial operations.
South Kyle is located 5km to the east of Dalmellington on the boundary of Dumfries & Galloway and East Ayrshire in Scotland. It will consist of 50 turbines with aggregate generating capacity of 240MW and a grid connection of 235MW. The wind farm is fully consented.
South Kyle is a subsidy free wind farm and it has entered into a route-to-market PPA with Vattenfall Energy Trading GmbH for the 15 years following commissioning. Vattenfall will construct the wind farm and will manage the asset on behalf of Greencoat UK for a minimum of 10 years once operational.
In addition to supporting the local economy through new jobs created, once operational, the wind farm will provide £38 million of direct investment into local schemes through its community benefit programme over the lifetime of the wind farm.
Tim Ingram, Chairman of UKW, commented: "We are delighted to enter into an agreement with Vattenfall, our fifth major utility partner. South Kyle is in close proximity to a number of other wind farms already owned by Greencoat UK Wind, and we are confident it will be another high quality addition to our portfolio."
Laurence Fumagalli of Greencoat Capital LLP added: "We are pleased with the transaction, which will bring a large scale subsidy free wind farm under our ownership. While we continue to expect the majority of our portfolio to comprise ROC accredited assets, the scale of our portfolio and balance sheet allows us to acquire a combination of different types of UK wind farms, such as South Kyle, and thereby find best value for shareholders."
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 36 operating UK wind farms with net generating capacity of 998MW. 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 approximately £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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