Greencoat UKW Wind PLC has announced that it has entered into an agreement to acquire Stroupster Wind Farm from BayWa r.e. renewable energy GmbH for a total consideration of £85 million (excluding cash balances).
The acquisition, which is expected to complete on 1 December 2015, will include the prepayment of existing indebtedness and will be funded by UKW's acquisition debt facility provided by RBC, RBS and Santander.
Stroupster Wind Farm is located in Caithness and has a capacity of 29.9 MW and a forecast net load factor of 38.5%. Stroupster was developed by Npower Renewables and constructed by BayWa r.e., a subsidiary of the BayWa Group. It is the fourth wind farm that UKW has bought from BayWa r.e. and follows on from the Cotton Farm and Earl's Hall Farm acquisitions in 2013 and the acquisition of Kildrummy Wind Farm in 2014. With the inclusion of Stroupster, BayWa r.e. will operate seven wind farms in UKW's portfolio.
Stroupster was commissioned in October 2015 and will be subject to an adjustment mechanism that will assess actual energy production over a two year period, with the acquisition price being adjusted accordingly. The wind farm will receive 0.9 ROCs per MWh.
Tim Ingram, Chairman, said:
"We are pleased to announce the acquisition of Stroupster Wind Farm, a further high quality addition to our operating portfolio and an expansion of our existing and successful relationship with BayWa. We continue to pursue other near term acquisition opportunities, but remain disciplined in only executing on opportunities that deliver attractive investment returns, consistent with our existing portfolio."
Following completion, at £135 million (£185 million less £50m equity proceeds), UKW's total outstanding debt is expected to be approximately 20% of Gross Asset Value (leverage limit 40%).