Acquisition of Kildrummy and Maerdy Wind Farms
Increases Greencoat UK Wind's net generating capacity to 226.4 MW
The Board of UKW, is pleased to announce that it has entered into an agreement to acquire Kildrummy Wind Farm from BayWa r.e. renewable energy GmbH ("BayWa r.e.") for a total consideration of £43.3 million (excluding cash balances).
It is also pleased to announce that it has entered into an agreement to acquire Maerdy Wind Farm from Velocita Energy Developments Ltd ("Velocita") for a total consideration of £52.9 million (excluding cash balances).
The acquisitions, which are expected to complete on 30 June 2014, will include the prepayment of existing indebtedness and will be funded through reinvestment of UKW's cash resources and its acquisition debt facility provided by RBC, RBS and Santander.
Kildrummy Wind Farm is located in Aberdeenshire and has a capacity of 18.4 MW and a forecast net load factor of 35.7%. Kildrummy was developed by Npower Renewables and constructed by BayWa r.e., a subsidiary of the BayWa Group (the German listed agriculture, building materials and energy group). It is the third 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.
The Maerdy Wind Farm is located in the Rhonda Valley in South Wales and has a capacity of 24 MW and a net forecast load factor of 32.2%. Maerdy was developed by Renewable Energy Partnerships and constructed by Velocita, a portfolio company of Riverstone Holdings LLC. The wind farm is the twelfth investment made by UKW and is the first from Velocita, the fourth vendor from which UKW will have acquired assets.
Kildrummy and Maerdy were commissioned in May 2013 and August 2013 respectively. Both will be subject to an adjustment mechanism that will assess actual energy production over a two-year period and the acquisition price would be adjusted accordingly. Both wind farms receive 1 ROC per MWh.
Tim Ingram, Chairman, said "We are pleased to announce the acquisition of Kildrummy and Maerdy Wind Farms, high quality additions to our operating portfolio. Our revised three-bank facility is of significant benefit to the company, and we look forward to integrating our new assets into the business."
Following completion, at £135 million, UKW's total outstanding debt is expected to be approximately 27% of Gross Asset Value (leverage limit 40%).
For further information, please contact:
Greencoat UK Wind PLC 020 7832 9400
Stephen Lilley
Laurence Fumagalli
Tom Rayner
Tulchan 020 7353 4200
Stephen Malthouse
Notes to Editors:
Greencoat UK Wind PLC is the leading renewable infrastructure fund, solely and fully invested in twelve operating UK wind farms with net generating capacity of 226.4 MW. The Company's aim is to provide investors with an annual dividend that increases in line with RPI inflation (6.16p for 2014) while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cash flow and the prudent use of portfolio leverage.
UKW is managed by an experienced team of senior executives from Greencoat Capital LLP, the cleantech and renewables focused investment management firm, and overseen by a strong and experienced independent board.
UKW is incorporated in England and Wales and is a UK Investment Trust.
For more information about UKW, please visit http://www.greencoat-ukwind.com
For more information about Greencoat Capital LLP, please visit http://www.greencoat-capital.com
