Greencoat Renewables PLC ("Greencoat Renewables", or the "Company") is pleased to announce an agreement to acquire an additional 22.5% stake in the Butendiek offshore wind farm ("Butendiek") from an affiliate of Siemens Pension Trust. The transaction consideration for the 22.5% stake is c.€168 million.
The Butendiek investment is subject to regulatory approval and scheduled to complete in November 2023. Greencoat Renewables expects to make the acquisition together with additional funds managed by Schroders Greencoat LLP, with Greencoat Renewables' total investment expected to be €122 million (72% of the 22.5% acquired stake from an affiliate of Siemens Pension Trust).
Greencoat Renewables originally acquired an initial 22.5% stake in Butendiek from Marguerite Pantheon in February 2023. The wind farm is located in Germany's exclusive economic zone in the North Sea and consists of 80 Siemens Gamesa 3.6MW turbines that have been operational since 2015.
Butendiek recently entered into a new Power Purchase Agreement ("PPA") with a large multinational for 62.5% of the output of the wind farm for a period of six and a half years. The PPA covers circa 700 GWh p.a., representing one of the largest renewable energy PPA's in Germany and underpins the Company's strategy of actively managing its revenue profile by securing long-term contracted cashflows.
Post-acquisition of Butendiek, Greencoat Renewables' total borrowings would stand at 48% of Gross Asset Value.
Bertrand Gautier, Investment Manager said:
"We are delighted to further increase our investment in Butendiek at a value that is accretive to NAV. The transaction was originated on a bilateral basis and reflects the Company's continued ability to transact rapidly and generate significant shareholder value through selective off-market investments.
Butendiek also demonstrates Greencoat Renewables' ability to actively manage its contracted revenue mix by re-contracting assets and capitalising on the increasing demand for renewable energy PPAs from multinational organisations."