Greencoat UK Wind has made its second-largest acquisition by purchasing a wind farm in Scotland for £181 million ($231.6 million; €196.6 million).
The London-listed fund bought the 69.5MW Corriegarth onshore project from US-based developer Invenergy. The wind farm was commissioned in April this year and received a 0.9 Renewable Obligation Certificate (ROC) banding for its subsidy last September. The asset has a 15-year power purchase agreement in place with a British utility.
Corriegarth is among the biggest projects in Greencoat’s 24-strong portfolio and cost Invenergy £118 million to build in 2015. A non-recourse loan of £100 million was provided by Bank of Tokyo-Mitsubishi and Nord/LB, with the remainder financed by Invenergy. The site is Greencoat’s second-largest investment after it spent £196.5 million on its initial 28.2 percent interest in the 350MW Clyde wind farm, in March 2016.
The deal is also Greencoat’s third acquisition in the past eight days, after it spent £105 million on the 30MW Slieve Divena project and the 60MW offshore North Hoyle site – both bought from JPMorgan Asset Management.
“It has been a busy period in the secondary wind market, and we have been able to find value and transact quickly,” explained Laurence Fumagalli, partner at Greencoat Capital.
The transaction was funded by the investment firm’s £400 million acquisition facility, which it said now has a refreshed tenor and lower margin. The total portfolio amounts to 617MW of wind assets.