LONDON (ShareCast) - (Sharecast News) - The Renewables Infrastructure Group (TRIG) has exchanged contracts to acquire an equity interest of 17.5% in the Beatrice offshore wind farm, it announced on Friday, from Copenhagen Infrastructure Partners (CIP).
Beatrice is a 588MW offshore wind farm developed by SSE using Siemens turbines, had a track record since operations began in 2018, and benefitted from a contract-for-difference subsidy.

The FTSE 250 company said that, following completion of the transaction, Beatrice would represent about 12% of TRIG's investment portfolio.

It said the wind farm is located about 13 kilometres off the north east coast of Scotland, and comprised 84 Siemens 7MW turbines which used direct-drive technology.

The project had a 15-year maintenance agreement in place with Siemens, and its contract-for-difference subsidy fixed the price received for all power generated until 2034, with indexation to inflation.

Debt financing on the project was at a fixed rate, and was fully amortising within the subsidy period.

The board said the investment, which was subject to regulatory and lender consents which were expected to be received in the coming weeks, would be financed from a drawdown of the group's recently-renewed revolving credit facility.

TRIG's co-shareholders would be SSE at 40%, funds managed by Equitix Investment Management which was also acquiring a 17.5% stake from CIP and was partnered with TRIG on the Sheringham Shoal offshore wind farm, and Red Rock Power at 25%.

"We are pleased to have the opportunity to invest in this high-quality project developed by SSE, who are a leading generator of renewable electricity in the UK," said Richard Crawford at TRIG's investment manager, InfraRed Capital PArtners.

"As investment manager, InfraRed seeks attractive opportunities for TRIG that increase the robustness of the portfolio, helping to deliver sustainable returns to shareholders from a diversified portfolio of renewables infrastructure.

"This major acquisition represents a continuation of this investment strategy and will be the company's third investment in a UK offshore wind farm and its fifth in the offshore wind sector."

At 0814 GMT, shares in the Renewables Infrastructure Group were down 0.16% at 126.2p.

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