Greencoat UK Wind has signed an agreement with The AES Corporation to purchase 51.6% interest in Sixpenny Wood, Yelvertoft, North Rhins and Drone Hill wind farms in the UK.
Under the terms of the agreement, Greencoat will acquire the 51.6% stake in the four wind farms from AES’ subsidiaries for a total consideration of £90.6m.
Slated for completion on 22 August, the acquisitions will be funded through reinvestment of UKW’s cash resources and debt facility provided by RBC, RBS and Santander.
The four wind farms, which have a total generation capacity of 87.5MW, were developed by AES.
The 20.5MW Sixpenny Wood wind farm is located near Goole in the East Riding of Yorkshire, whereas the 16.4MW Yelvertoft facility is situated east of Rugby in Northamptonshire.
Both the Sixpenny Wood and Yelvertoft wind farms entered into service in July 2013.
The 22MW North Rhins wind farm, which has been operational since December 2009, is situated on the North Rhins peninsula, west of Stranraer in Dumfries and Galloway.
Located west of Eyemouth in the Borders, the 28.6MW Drone Hill facility started commercial operations in August 2012.
Greencoat UK Wind chairman Tim Ingram said: "We are pleased to increase our investment portfolio to 16 UK wind farms with a net generating capacity of 271.5MW.
"AES is the fifth seller of wind farms to UKW, a testament to the company’s independence and to its ability to be selective in its acquisitions."
Greencoat UK will have a total outstanding debt of £225m, which is expected to be approximately 38% of gross asset value, upon completion of the transaction.
The remaining 48.4% stake in the wind farms will be acquired by Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities, a fund managed by Swiss Life Asset Managers.
Image: AES’s Sixpenny Wood wind farm. Photo: © 2012 – 2014 AES Wind Generation.