Greencoat Renewables has recently announced its plans to acquire an additional 22.5% stake in the Butendiek offshore wind farm located in the German North Sea. This strategic move comes as part of Greencoat Renewables' ongoing expansion efforts and marks a significant development in the renewable energy market.
The transaction, valued at approximately €168 million, will see Greencoat Renewables increasing its ownership share in the Butendiek project. To facilitate this acquisition, additional funds managed by Schroders Greencoat will be utilized, with Greencoat Renewables' total investment amounting to €122 million, representing 72% of the acquired stake.
This move follows Greencoat Renewables' initial acquisition of a 22.5% stake in the Butendiek wind farm from Marguerite Pantheon in February 2023. Since then, Butendiek has been making strides in securing its energy output through a new power purchase agreement (PPA) with a multinational corporation. This PPA covers an impressive 62.5% of the wind farm's output, equivalent to approximately 700 gigawatt-hours per year.
It's important to note that the completion of the Butendiek investment is contingent upon regulatory approval and is scheduled to finalize in November 2023. Post-acquisition, Greencoat Renewables' total borrowings will stand at 48% of Gross Asset Value, reflecting the company's commitment to responsible financial management.
Commenting on the acquisition, Bertrand Gautier, Investment Manager at Greencoat Renewables, expressed enthusiasm, saying, “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 capitalizing on the increasing demand for renewable energy PPAs from multinational organizations.”
