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Greencoat Renewables to buy another 22.5pc of Butendiek wind farm

By Josh White

Date: Monday 02 Oct 2023

Greencoat Renewables to buy another 22.5pc of Butendiek wind farm

(Sharecast News) - Greencoat Renewables announced plans to purchase an additional 22.5% share in the Butendiek offshore wind farm on Monday.

The AIM-traded company said the €168m acquisition would be from an affiliate of Siemens Pension Trust and followed its previous purchase of a similar 22.5% stake in Butendiek from Marguerite Pantheon in February.

Located in Germany's exclusive economic zone in the North Sea, the Butendiek wind farm boasts 80 Siemens Gamesa 3.6MW turbines.

Since it began operations in 2015, the wind farm has played a pivotal role in Germany's renewable energy landscape, Greencoat explained.

A recent deal saw Butendiek enter a power purchase agreement (PPA) with a significant, unnamed multinational corporation.

The agreement was set for six and a half years, covering roughly 700 GWh annually, and would see it become one of Germany's most substantial renewable energy power purchase agreements.

It aligned seamlessly with Greencoat Renewables' strategy, emphasising securing long-term contractual cash flows by actively managing its revenue profile.

The acquisition was set to be finalised in November and hinged on regulatory approval.

Greencoat said it would fund the purchase in collaboration with funds managed by Schroders Greencoat.

Its total investment in the transaction would amount to €122m, representing 72% of the newly acquired stake from Siemens Pension Trust.

After the acquisition, Greencoat Renewables' total borrowings were projected to be 48% of its gross asset value.

"We are delighted to further increase our investment in Butendiek at a value that is accretive to net asset value," said investment manager Bertrand Gautier.

"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 capitalising on the increasing demand for renewable energy PPAs from multinational organisations."

At 1313 BST, shares in Greencoat Renewables were up 0.32% at 0.97p.

Reporting by Josh White for


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