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NTR wind fund adds another 25MW with £50m deal

The £250m vehicle now manages 11 wind assets with a combined capacity of 195MW ahead of a more diversified fund launch later this year.

Irish wind company NTR has agreed its eleventh acquisition for the NTR Wind 1 LP Fund with the acquisition of the 25MW Castlecraig Wind Farm in Northern Ireland from developer RES.

The project, which will cost NTR just over £50 million ($62.6 million; €58.8 million), remains under development and will be operational by summer 2018. It is the third tie-up between the two companies in the last 18 months, with assets totalling 58MW.

The deal brings NTR Wind 1 LP Fund’s portfolio to 195 MW across 11 wind farms based in the UK and Ireland. Its previous acquisition was the 28.7MW Twin Rivers wind farm in Yorkshire from InfraRed’s Environmental Infrastructure Fund and the Co-operative Group for £80 million in December.

NTR is also in the initial stages of launching a second fund which is expected to open later this year. The follow-up vehicle will likely have a more diversified approach, with solar added to the mix as well as energy storage projects in select European countries. The fund is set to mark NTR’s first forays into solar since two large-scale investments in the US went awry last decade, eventually being sold in 2011.

NTR’s debut fund closed on €250 million in February last year after receiving backing from LPs such as Legal & General Capital, the Strathclyde Pension Fund and the Ireland Strategic Investment Fund. Total equity and debt requirements for the fund’s investments are expected to reach about €670 million and it is targeting a net IRR of 8.9 percent.