Greencoat buys Co Wexford wind farm for €10.9m from local developers

Dublin-listed energy group Greencoat Renewables has acquired a 9.2 MW wind farm in Co Wexford for €10.9 million, in what is its tenth acquisition.

The company, which raised €110 million in an oversubscribed initial placing last month, said it has bought the Knocknalour asset from a group of local developers.

The acquisition comes hot on the heels of a deal earlier this month to acquire national forestry company Coillte’s stake in four wind farms for €136 million.

Powered by Enercon turbines, the Knocknalour wind farm has a total capacity of 9.2MW. Following the acquisition, Enercon will continue to manage the wind farm’s operation and maintenance contract, Greencoat said.

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In a note to investors, Davy said the bolt-on acquisition will add 3 per cent to Greencoat’s pro forma installed capacity.

"Commissioned in September 2013, the asset is slightly older than other wind farms in the portfolio. While it clearly will not enjoy the same length of REFIT-guaranteed minimum floor price for output generated, this (among other factors; for instance it has not disclosed the wind factor of the asset) can often result in assets being available at more attractive terms," said Davy analyst Michael Mitchell.

The latest acquisition was funded by Greencoat’s €250 million revolving credit facility, which was agreed late last year with five banks.

Shareholders in Greencoat, which generated €13.4 million in cash in the first six months of 2018, recently overwhelmingly backed a plan by the company for a big share sale as it looks to increase its financial flexibility to take advantage of the secondary market for wind assets in the Republic.

Following the acquisition, Greencoat's total borrowings will be 21 per cent of Gross Asset Value, excluding consideration of the Coillte acquisition which is expected to close during November.