Greencoat spends £100m on Scots wind farms

Investment trust Greencoat UK Wind plc (UKW) said on Wednesday it has acquired the remaining 50% interest in Braes of Doune wind farm in Stirlingshire for £48.1 million from funds managed by Federated Hermes.

“Braes of Doune is located in Stirlingshire, Scotland and comprises 36 Vestas V80 2MW turbines, with a total capacity of 72MW,” said Greencoat UK Wind.

“The wind farm was commissioned in June 2007 and receives 1 ROC per MWh.

“UKW now owns 100% of the wind farm, having acquired its original 50% stake at IPO in March 2013.”

Greencoat UK Wind also announced it agreed with Banks Renewables Limited to acquire a 49.9% interest in Kype Muir Extension wind farm for a “headline consideration” of £51.4 million, to be paid once the wind farm is fully operational.

UKW will also provide construction finance of up to £47 million.

Kype Muir Extension is located in South Lanarkshire, Scotland and will comprise 4 Nordex 3.6MW turbines plus 11 Nordex 4.8MW turbines, with a total capacity of 67.2MW,” said Greencoat UK Wind.

“The wind farm is subsidy free and will benefit from a 15 year fixed power price agreement with a utility.

Following its recently completed share placing, raising gross issue proceeds of £198m, and following its acquisition of the incremental interest in Braes of Doune, the company intends to repay £160m of its revolving credit facility (RCF), reducing borrowings under the RCF from £400m to £240m.

“Together with £700m of term debt, total borrowings will be £940m, equating to 28% of Gross Asset Value.”

Stephen Lilley of Greencoat Capital LLP said: “We are delighted to acquire the remaining 50% of Braes of Doune, a high quality, ROC-accredited asset, in which we have been invested since March 2013.

“We are also excited to be partnering with Banks Renewables on Kype Muir Extension and look forward to acquiring 49.9% of the project in Q4 2022.”

Greencoat UK Wind is a listed renewable infrastructure fund, which has invested in 38 operating UK wind farms with net generating capacity of 1,209MW. 

UKW is managed by Greencoat Capital LLP, a European renewable investment manager with over £6 billion of assets under management.

UKW is incorporated in England and Wales and is a UK Investment Trust.