Perth-based energy giant SSE said on Monday it agreed to sell 49.9% of its current Clyde Wind Farm in South Lanarkshire to pension fund investors Greencoat UK Wind (UKW) and GMPF & LPFA Infrastructure (GLIL) for a total of £355 million.
But when an extension to Clyde Wind Farm is commissioned — the extension is expected to be completed in June 2017 — the equity stake jointly owned by UKW and GLIL will be diluted to 30% with SSE retaining 70%.
In March 2014, SSE announced a disposal programme with intended proceeds and debt reduction of £1 billion from the sale of non-core assets and businesses and the sale of existing or in-development onshore wind farms.
“Today’s announcement takes the total proceeds achieved to date in excess of that target and will release capital to support future investment,” said SSE.
“We are pleased to confirm the sale of a stake in our flagship Clyde wind farm to UKW and GLIL,” said Martin Pibworth, SSE’s managing director, wholesale.
“The sale represents another significant step in a programme of disposals to recycle capital and optimise our wind farm pipeline. The proceeds from this disposal will help to support our future investments in a balanced range of energy assets.”
For the deal, SSE was advised by Rothschild, Credit-Suisse and CMS.