In its ongoing efforts to expand its presence in Europe, Greencoat Renewables has acquired an additional stake in the Butendiek wind farm in Germany’s exclusive economic zone.
The acquisition, made from an affiliate of Siemens Pension Trust for €168m, follows Greencoat’s recent acquisition of the Andella wind farm in Spain.
Completion of the Butendiek investment is expected in November 2023, pending regulatory approval. Greencoat Renewables plans to finance the acquisition with additional funds from its parent company, Schroders, bringing its total investment to €122m or 72% of the total stake.
Butendiek, which has been operational since 2015, is comprised of 80 turbines and is known for its recent power purchase agreement with a multinational organization, securing 62.5% of the wind farm’s output for six-and-a-half years.
With the acquisition of Butendiek, Greencoat Renewables’ total borrowings will amount to 48% of gross asset value.
Bertrand Gautier, Greencoat’s investment manager, expressed delight in the increased investment in Butendiek, highlighting its value and the company’s ability to generate shareholder value through selective off-market investments.
Gautier also emphasized Greencoat Renewables’ effective management of its contracted revenue mix, citing its ability to re-contract assets and capitalize on the growing demand for renewable energy power purchase agreements from multinational organizations.
Although Greencoat Renewables reported a decline in profits for the first half of the year, the company remains optimistic about the opportunities for renewable energy investment in Europe. Despite challenging economic conditions and lower-than-expected wind levels, the company’s revenues increased due to portfolio expansion and exposure to higher merchant prices. Net cash generation also saw a significant surge.
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