Hydro deal agreed
Green Highland Energy sold to SIMEC
Green Highland Renewables: 18 current projects
Ancala Partners, an infrastructure investment manager, is selling its Scotland-based hydro power business, Green Highland Renewables.
The disposal to SIMEC, the energy arm of the global energy, metals and industrials group, the GFG Alliance, is for an undisclosed sum. The transaction is scheduled to complete before the end of February.
Ancala acquired Perth-headquartered GHR in April 2015 and has invested in the business to execute a consolidation and development strategy in the fragmented UK hydro sector.
Following Ancala’s investment, GHR has significantly outperformed its acquisition business plan with its portfolio quadrupling in size over three years of ownership. GHR currently has 18 operating projects with a total capacity of more than 23MW and another four under development with a total capacity of 8MW.
The portfolio will comprise more than 31MW of installed capacity once development projects are complete.
A key factor in the success of Ancala’s strategy has been the growth in GHR’s hydro portfolio through development of new plants and select acquisitions.
Earlier this year, Ancala announced that it had raised £51 million of debt facilities for Green Highland Hydro, the asset ownership vehicle for hydro power assets developed by GHR.
Spence Clunie, managing partner, Ancala Partners, said: “Our strategy of transforming GHR into one of the leading independent owners and operators of hydro plants in the UK has been successful. We thank the GHR team for their contribution and wish them continued success.
“Ancala remains committed to pursuing opportunities in the UK and European mid-market infrastructure sector which provide inflation-linked, stable cash flows for our investors.”
Ian Cartwright, managing director, Green Highland Renewables, commented: “We have enjoyed working with Ancala Partners over the past three years. Ancala saw the opportunity to grow GHR through targeted investment and operational improvement.
“The access to capital and operating expertise they have provided have allowed us to transform GHR into the UK’s leading independent owner and operator of hydro power plants.”