Greencoat U.K. Wind Plc, a London-based listed fund, bought the Stroupster wind farm in Scotland from BayWa r.e. Renewable Energy GmbH for 85 million pounds ($128 million).
The onshore wind farm has a capacity of 30 megawatts and is located in Caithness county in northern Scotland, Greencoat said in a statement. The fund now has 301 megawatts of net generation capacity.
The acquisition was funded by a debt facility provided by Royal Bank of Scotland Plc, Royal Bank of Canada and Banco Santander SA. The sum includes the prepayment of existing indebtedness and excludes cash balances.
Stroupster is the fourth wind project that the listed fund has bought from BayWa r.e., a subsidiary of Germany’s BayWa Group. The unit will receive a fixed price for the electricity it generates from the U.K.’s renewables obligation program. The government said in June that they will slash subsidies for onshore wind, beginning next year.
“We continue to pursue other near-term acquisition opportunities, but remain disciplined in only executing on opportunities that deliver attractive investment returns, consistent with our existing portfolio," said Chairman Tim Ingram.