Hermes GPE buys 144MW Scottish wind farm

The transaction follows the UK firm’s investment in a 72MW plant last May.

Private investment firm Hermes GPE has acquired a majority stake in Fallago Rig Wind Farm, Southern Scotland.

The London-based fund manager purchased the holding from EDF Energy and EDF Energies Nouvelles, which up to now were partners in a 50/50 joint venture owning the asset. Both will retain equity in the project, while EDF Energy Renewables will continue to operate and manage the site.

Fallago Rig is a 144-megawatt (MW), 48-Vestas turbine onshore wind farm located on the Roxburghe Estate, 35 kilometres southeast of Edinburgh, in the Scottish Borders. Its construction took place in 2012, with generation starting in January 2013 and full production in April 2013.

The fifth-largest onshore wind farm in the UK, Falago Rig has an annual output equivalent to the electricity consumption of around 90,000 homes. It has a long-term Power Purchase Agreement in place with EDF Energy.

The deal is Hermes GPE's second in renewable energy this year, after it bought a 50 percent stake in the 72 MW Braes of Doune wind farm in Stirlingshire, Scotland, from UK utility Centrica in May. It also teamed up with venture capital firm Scottish Equity Partners to acquire Anesco, a UK energy efficiency business, from clean energy specialist Zouk Capital last September.

Last March, the firm announced its decision to put greater emphasis on its distinct infrastructure and private equity units. Chief executive Alan McKay, who departed in July, hasn’t been replaced since.

The firm’s infrastructure operations continue to be led by Peter Hofbauer, while Peter Gale remains at the head of the private equity business.

Hermes GPE was formed in 2010 through the merger of London-based Hermes and Gartmore Investment Management. The firm’s assets under management, worth around £6 billion, have gradually diversified to encompass significant infrastructure investments.