BayWa r.e. has agreed to sell its Dalquhandy wind farm to Greencoat UK Wind, a renewable infrastructure fund managed by Schroders.
Located near Coalburn in South Lanarkshire, the 42MW installation comprises 10 Vestas V136 4.2MW turbines and comes with a 10-year fixed price power purchase agreement (PPA) with BT for 80% of its output.
Dalquhandy should produce enough green electricity to supply approximately 31,000 British households.
Completion of the acquisition is expected to take place in May and it will be the sixth wind farm that Greencoat has acquired from BayWa r.e. after Cotton Farm and Earl's Hall Farm (2013); Kildrummy (2014); Stroupster (2015) and Bishopthorpe (2017).
The company will also provide technical asset management services for Dalquhandy to ensure maximum availability and performance optimisation of the wind farm. BayWa r.e. also provides asset management services for Greencoat’s 207 MW UK wind portfolio.
Steve Packwood, regional director of wind projects EMEA, commented: “The sale of Dalquhandy, following other recent sales of projects in the UK, is testament to our valuable reputation for developing successful and high-quality renewable energy projects, making them attractive investment opportunities in the market.
“Such investments in clean energy infrastructure drive the development of new renewable projects and thus make an important contribution to the success of crucial climate goals.”
The deal follows recent momentum for BayWa r.e.’s UK business with the sale of two solar projects totalling a capacity of 110 MWp. The company is currently working on an active 2.9GW pipeline across solar, onshore and offshore wind in the UK and Ireland.
Burges Salmon advised BayWa r.e. on the deal, led by associate Niall Mackle and partner Danny Lee. The corporate team originally advised the company on its purchase of the same wind farm.
Christine McGregor, managing director of BayWa r.e. UK, commented: “We are grateful to the Burges Salmon team for leading us seamlessly though this transaction and pleased to have completed the sale of Dalquhandy Wind Farm to Greencoat UK Wind, a partner who shares our commitment to renewable energy.”
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