Multinational investment firm Allianz Capital Partners is to acquire a 25.2% stake in the Hollandse Kust Zuid (HKZ) offshore wind farm from Germany-based chemical company BASF.

The company agreed to acquire the stake on behalf of Allianz Insurance Companies (Allianz).

Located offshore from the Netherlands, the 1.5GW HKZ facility features 140 wind turbines and is owned by BASF and Vattenfall.

The project is being built in an area divided into four parcels in the North Sea, around 18km from the Dutch coast.

It will become the world’s largest offshore wind farm once it is completed.

In September, BASF acquired a 49.5% stake in HKZ from Vattenfall, having agreed to acquire it in June.

The HKZ project is currently led by Vattenfall and is expected to become fully operational in 2023.

Once operational, BASF will receive most of the clean energy produced by its previously purchased 49.5% share under a long-term, fixed-price corporate power purchasing agreement (CCPA).

The deal is expected to close in the first quarter of next year subject to merger control approvals.

Once it is completed, BASF said it will consolidate its remaining 24.3% stake at equity.

The deal is expected to benefit BASF, which is seeking to offload some of its shares to a financial co-investor.

Allianz Group chief information officer Carsten Quitter said: “We are delighted about our first offshore wind investment and our first renewables investment in the Netherlands.

“We look forward to supporting jointly with our partners this ambitious project, which will play a major role in the green energy supply of Europe.

“With this investment, we will further drive the energy transition towards renewables.”

The deal will mark Allianz’s first equity investment in offshore wind and its first renewables investment in the country.

The companies have not disclosed the financial details of the deal.