Centrica sells 50% interest in Braes of Doune wind farm

Centrica plc has reached an agreement to sell its 50% interest in the 72MW Braes of Doune onshore wind farm in Stirlingshire, for £59 million in cash

Centrica plc has reached an agreement to sell its 50% interest in the 72MW Braes of Doune onshore wind farm in Stirlingshire, Scotland, for £59 million in cash. The stake has been acquired by the Hermes GPE Infrastructure Fund, which is managed by Hermes GPE LLP. Centrica will continue to receive 100% of the wind farm’s output under a power purchase agreement (PPA). The sale is in line with Centrica’s strategy to release capital from operational wind assets to enhance returns. Following completion of the transaction, Centrica will retain equity interests in four operational wind farms, and also retains interests in potential offshore wind farm projects at Race Bank and in the Round 3 Irish Sea Zone.

Notes

Notes to Editors:

  • The transaction is expected to close no later than 7 June 2013.
  • Centrica acquired a 50% interest in the Braes of Doune wind farm in August 2007 for £42 million.
  • Centrica’s equity interests in UK operational wind farms following the transaction are detailed below:
   

Total installed capacity (MW)

Centrica equity interest

Centrica installed capacity (MW)

Centrica offtake through PPAs (MW)

Glens of Foudland

Onshore

26

50%

13

26

Braes of Doune

Onshore

72

0%

0

72

Barrow

Offshore

90

50%

45

90

Lynn and Inner Dowsing

Offshore

194

50%

97

194

Total fully operational

      

155

382

Lincs (in commissioning)

Offshore

270

50%

135

203

Total

      

290

585

About Hermes GPE

Hermes GPE is a specialist, independent investor and advisor in global private markets with more than £6.2 billion of capital under management for leading institutional investors and pension funds. Hermes GPE focuses on creating bespoke long-term solutions that meet its clients’ specific investment objectives. The team has a track record which spans 20 years, making it one of the most experienced investors and portfolio advisors in global private equity and infrastructure. Infrastructure is a significant and growing part of Hermes GPE’s offering and accounts for 40% of capital under management. The Hermes GPE Infrastructure Fund focuses primarily on UK infrastructure transactions with specific investment characteristics in four key sectors: utilities, renewable energy, transport and distribution and social infrastructure. Hermes GPE is an active proponent of responsible investing and is a signatory of the UN-backed Principles for Responsible Investment.