Consortium acquires 49.9%
SSE sells giant Lanarkshire windfarm stake for £355m
The acquisition of one of the biggest windfarms in Britain also involves GMPF & LPFA Infrastructure, the infrastructure investment joint venture between Greater Manchester Pension Fund and London Pensions Fund Authority.
UKW will acquire 28.2% of Clyde and GLIL 21.7%. SSE will continue to hold 50.1%.
The windfarm is located in South Lanarkshire and its 152 turbines have a generating capacity of 350 MW. SSE will continue to operate the assets with Siemens providing turbine operation and maintenance.
SSE is in the process of constructing a further 54 Siemens 3.2 MW turbines with a total capacity of 173 MW.
Once the extension is operational, UKW’s and GLIL’s shareholding in Clyde will be diluted, with an implied value of £467m. Under the shareholders’ agreement, UKW and GLIL have a Right of First Offer.
Tim Ingram, chairman of UKW, said: “We are pleased to announce UKW’s latest acquisition, which will deliver an attractive investment return, in line with the existing portfolio. We are delighted to extend our relationship with SSE and co-own Clyde, one of the largest onshore wind farms in the UK.”
Laurence Fumagalli of Greencoat Capital added: “There remains an exciting pipeline of future acquisition opportunities and we believe that our model positions us competitively in the market to acquire operational assets and makes us an attractive partner for utility vendors.”
Paddy Dowdall, assistant executive director, GMPF said: “We are excited to be investing alongside Greencoat UK Wind and SSE in this venture. This investment offers us attractive returns, complements our growing renewable portfolio and continues our commitment to investing directly in British infrastructure.”
The acquisition, which is expected to complete on 18 March, will be funded by a £165m utilisation under UKW’s revolving credit facility, an increase of £25m in UKW’s fixed-rate loan with the Commonwealth Bank of Australia, £5m from UKW’s cash resources, plus Clyde cash balances.