InfraRed Capital Partners has agreed to purchase a £78 million ($101.7 million; €91 million) wind farm in Scotland that is ready to begin construction.
The 50MW Afton wind farm has received approval, secured grid connectivity and is expected to begin construction later this year, InfraRed said in a statement. The fund manager said the project should be complete in one year.
InfraRed invested through its Infrastructure Fund III, a $1.2 billion vehicle that closed in 2011 and focuses on greenfield infrastructure projects.
The London-based company acquired the project construction-ready from German utility E.ON's renewables division. The asset benefits from a 15-year floor tariff. Gamesa, which is supplying the turbines, agreed to a 15-year maintenance agreement.
“This opportunity arose at short notice and our experience in converting late-stage development onshore wind farms and managing construction has allowed us to successfully complete the transaction within a matter of weeks with support from E.ON,” InfraRed managing partner Bryn Jones said.
The firm manages over $9 billion of equity capital invested in infrastructure and real estate. It launched over 25 years ago and has listed two companies on the London Stock Exchange, HICL Infrastructure Company and The Renewables Infrastructure Group (TRIG).
Last week, TRIG acquired another Scottish wind farm, a 22.5MW project that prompted the firm to propose a £25 million share offer. The transaction's proceeds will be used to help fund the acquisition and pay down a debt facility.