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Greencoat Renewables agrees to acquire four wind farms in Ireland


Greencoat Renewables agrees to acquire four wind farms in Ireland – Greencoat Renewables (GRP)  has agreed to acquire the majority of Coillte’s shareholdings in its portfolio of operating wind generation assets, for a total consideration of €136.1 million. The investments total a net generating capacity of 105.1MW, taking Greencoat Renewables’ total installed capacity to 299MW.

About Coillte

Coillte is a commercial company, owned by the Irish State, operating in forestry, land based businesses, renewable energy and panel products in Ireland.  It owns over 445,000 hectares of land, about 7% of the land cover of Ireland. Coillte is organised into three divisions: Coillte Panel Products, Coillte Forest and Coillte Enterprise. Click here to visit the company’s website

About Greencoat Renewables

Greencoat Renewables is an owner and operator of renewable infrastructure energy assets. The company is invested in wind farms in the Republic of Ireland, and listed on the ESM market of the Irish Stock Exchange and the AIM market of the London Stock Exchange. It is managed by Greencoat Capital.

The aquisition

Greencoat Renewables will acquire the entirety of Coillte’s 50% stakes in Raheenleagh, Cloosh Valley, and Castlepook wind farms; and acquire a 25% stake in Sliabh Bawn wind farm with Coillte retaining 25% ownership. The portfolio comes with long term fixed rate project finance and has an overall net enterprise value of €281 million.

Coillte’s portfolio was co-developed with SSE, ESB and Bord Na Mona, who each remain joint venture partners in their respective wind farms and retain certain rights in relation to the transaction. The assets are of high quality with high load factors, experienced utility operators, and managed under a suite of long-term contracts. The assets also benefit from 13+ years of fixed-floor power prices, and options to extend the land leases to 50 years. Greencoat Renewables’ investment manager, Greencoat Capital, has a long track-record of partnerships with SSE and ESB.

In line with its strategy, the sale allows Coillte to recycle capital, and continue to develop its extensive pipeline of over 25 projects, and 1GW of wind capacity in Ireland. Coillte will continue to own the land on which the wind farms operate.

The acquisition, which is expected to complete by November 2018, will be funded by Greencoat Renewables’ existing Revolving Credit Facility.

The acquisition comprises:

  • 50% stake in Raheenleagh wind farm – Located in County Wicklow; 11 turbines with a gross capacity of 35.2MW; investing alongside ESB which owns the remaining 50%.
  • 50% stake in Cloosh Valley wind farm – Located in County Galway; 36 turbines with a gross capacity of 108MW; investing alongside SSE Renewables which owns the remaining 50%. Cloosh Valley is part of the Galway Wind Park, co-developed by SSE and Coillte and Ireland’s largest and best performing wind farm, generating more green energy than any other wind generation site on the island.
  • 50% stake in Castlepook wind farm – Located in County Cork, comprising 14 turbines with a gross capacity of 33.2MW; investing alongside ESB which owns the remaining 50%.
  • 25% stake in Sliabh Bawn wind farm – Located in County Roscommon; 20 turbines with a gross capacity of 64.0MW; investing alongside Bord Na Mona which owns 50%, and Coillte which owns 25%.

Comment from Bertrand Gautier, Partner at Greencoat Capital

“We are delighted with this investment into one of Ireland’s premier infrastructure portfolios, and alongside some of the country’s most experienced and trusted utilities. As a strategic scale asset, this is another example of our ability to find value across the entire market, and allows Coillte to recycle its capital to build out their significant development portfolio. We look forward to deepening our strategic partnerships with SSE, ESB, Bord Na Mona, and Coillte itself.”

Comment from Fergal Leamy of Coillte:

“Today’s announcement demonstrates the quality of the renewable energy assets which we have developed over the last four years.  Greencoat Renewables PLC has an excellent track record and expertise in the sector and has established a strong presence in Ireland.  This sale clearly demonstrates the value we can create from every hectare of land we own to ultimately deliver enhanced value to our shareholder.  The proceeds from the sale will be reinvested in the business to generate more value and to enhance the overall value of the Group.  Over the coming months we will announce details of how we plan to develop in excess of 1,000 MW of renewable energy generating capacity over the next 10 years across a pipeline of 25 projects we have identified on the Coillte estate.”

 GRP : Greencoat Renewables agrees to acquire four wind farms in Ireland

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