Octopus acquires 149MW portfolio of four UK-based onshore wind projects
The acquisition of onshore wind projects from Blue Energy will provide enough energy to power around 125,000 households.
Octopus Investments (“Octopus”) and Blue Energy today announced the acquisition of a 149MW portfolio of four UK-based onshore wind projects by funds managed by Octopus. The acquisition consolidates Octopus’ position as a leading renewable energy operator in the UK.
The acquired portfolio includes Blue Energy’s flagship Beinneun Project (109MW) as well as the Cour (21MW), Grange (12.3MW) and Hillhead of Auquhirie (6.9MW) wind farms. All of the projects in the portfolio are supported by the Renewables Obligation Scheme and will provide enough renewable energy to power around 125,000 households.
Blue Energy will continue to manage all of the assets and the acquisition will see the existing external debt retained in all four projects.
Chris Gaydon, a director on Octopus’ Energy Investments team, said: “We are very pleased to have completed this transaction and have enjoyed working with the experienced team at Blue Energy. Alongside the UK’s largest portfolio of solar PV and our investments in advanced grid technologies and energy supply, the acquisition of these wind farms marks another major milestone in our ambition to become the industry's leading generator and supplier of clean energy in the UK.”
The news follows quickly on from Octopus’ recent announcement that it had successfully closed a £300 million institutional fund to invest in UK renewable energy power plants. Octopus has also recently raised £484 million of debt finance for UK solar assets, Europe’s largest solar PV refinancing.
Octopus is a major investor in UK renewable energy, with over £2.5 billion AUM in generating assets in solar and onshore wind as well as other technologies such as gas-fired reserve power, biomass and landfill gas. In addition to investing in energy optimisation technologies, it is also a market-disruptive energy supplier through Octopus Energy as it looks to build the country’s next generation energy company. Its aim is to bring together energy generation, distribution and supply capabilities to provide greener, cheaper energy to consumers, and more stable, predictable returns to investors.
Christopher Dean, CEO of Blue Energy, commented: “We have been working with Octopus for some time on a variety of projects and are delighted that we will continue to work with them following this acquisition. We remain fully committed to the UK renewables sector and continue to be acquisitive and supportive of appropriate development opportunities.”
Blue Energy has retained a portfolio of other assets, including its interests in the Blackcraig (52MW) and Whiteside Hill (24MW) projects, as well as a portfolio of other development and consented projects.
Blue Energy were advised by KPMG (Adrian Scholtz) as financial adviser, with legal support from Watson Farley & Williams (Andy Savage) and Pinsent Masons (Ian McCarlie).
Octopus were advised by CMS (legal), PwC (financial and tax diligence) and Natural Power (technical).
The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest. We do not offer investment or tax advice. We recommend investors seek professional advice before deciding to invest. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. Issued: July 2017