Greencoat Renewables to boost stake in Butendiek offshore wind farm for €168m

Greencoat Renewables PLC is making waves in the renewable energy sector with its latest announcement to acquire an additional 22.5% stake in the coveted Butendiek offshore wind farm. With a transaction price of approximately €168 million, the acquisition is set from an affiliate of Siemens Pension Trust and is poised to solidify Greencoat Renewables’ stronghold in the market.

The pivotal Butendiek investment awaits regulatory nod and is anticipated to finalize by November 2023. This strategic acquisition is set to be a collaborative effort between Greencoat Renewables and funds overseen by Schroders Greencoat LLP. From the total acquisition cost, Greencoat Renewables is set to invest an estimated €122 million, accounting for 72% of the newly acquired 22.5% stake.

This isn’t Greencoat Renewables’ maiden venture into the Butendiek offshore wind farm. The company had previously bagged an initial 22.5% stake from Marguerite Pantheon in early 2023. Signifying the strength and potential of Butendiek, the wind farm sits prestigiously in Germany‘s exclusive North Sea economic zone and boasts 80 state-of-the-art Siemens Gamesa 3.6MW turbines, operational since 2015.

Further cementing its reputation, the Butendiek offshore wind farm has recently inked a new Power Purchase Agreement (PPA) with a leading multinational, securing 62.5% of the wind farm’s output for an impressive span of six and a half years. With the PPA encompassing a remarkable 700 GWh p.a., it stands tall as one of Germany’s most substantial renewable energy contracts, highlighting Greencoat Renewables’ strategic vision of cementing long-term cashflow through active revenue management.

Once the acquisition is finalized, Greencoat Renewables’ borrowings are projected to be 48% of its Gross Asset Value.

Bertrand Gautier, the insightful Investment Manager at Greencoat Renewables, expressed the company’s enthusiasm, stating, “This acquisition not only amplifies our investment in Butendiek but also mirrors our capability to swiftly transact and deliver substantial shareholder value. Butendiek is a testament to Greencoat Renewables’ prowess in capitalizing on the surging demand for renewable energy PPAs from multinational giants.”