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May 22, 2020

Greencoat buys 156MW solar portfolio from BlackRock and Lightsource bp

UK asset management company Greencoat Capital is set to purchase a solar portfolio from BlackRock Real Assets and Lightsource bp.

UK asset management company Greencoat Capital is set to purchase a solar portfolio from BlackRock Real Assets and Lightsource bp.

Greencoat Solar II LP has invested in the acquisition on behalf of several UK’s pension funds.

Financial details of the deal have not been divulged by the companies. The portfolio has a capacity of 156MW.

Greencoat Capital official Karin Kaiser said: “This is a brilliant portfolio of proven operational assets that will provide our clients predictable cashflows with inflation protection over the long term, whilst contributing to the decarbonisation of the UK’s electricity sector.

“The acquisition takes installed solar capacity to over 880MW, across the funds we manage, generating enough power across the year to power all the homes in a city the size of Manchester. We continue to see a strong opportunity for solar aggregation in the UK, and an active near-term pipeline.

“This transaction delivers to investors in Greencoat Solar II long term secure income cash flows that over the long lifetime of these assets will be uncorrelated to general stock market factors.”

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The portfolio acquired by Greencoat has the capacity to power around 45,000 homes while offsetting 65,000 tonnes of carbon emissions annually.

Additionally, the portfolio has been credited with the Renewables Obligation Certificates (ROC). Nearly 16 years of support is still left on an average.

In 2017, 90% stake in the solar portfolio was acquired by BlackRock’s Global Renewable Power team by partnering with Lightsource bp, which acquired the remaining 10% stake in the portfolio.

Going forward, Lightsource bp has agreed to provide ongoing asset management and operational services.

The deal is said to increase solar generating capacity of funds managed by Greencoat to almost 880MW.

BlackRock Renewable Power global chief investment officer and Europe head Rory O’Connor said: “The structural transition to a lower-carbon future is providing attractive investment opportunities in renewable power globally.

“There is a significant re-allocation of capital underway that underscores the resilience of the sector, even while public markets face uncertainty as the world addresses the COVID-19 pandemic.”

In December 2018, Greencoat Renewables entered into an agreement to acquire two Irish wind farms from BlackRock Real Assets (BlackRock) for a total consideration of €88m ($100.4m).


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