HgCapital sells operating UK Wind portfolio to Munich Re

August 13, 2012

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HgCapital, the European sector-focused private equity investor, has today announced the sale of its operating UK onshore wind portfolio to Munich Re, represented by its asset management arm MEAG, for an undisclosed sum.  The portfolio consists of three operating wind farms with a combined capacity of 102MW.  The portfolio was held by HgCapital Renewable Power Partners, HgCapital’s first dedicated renewable energy investment fund raised in 2006 and includes a 50% interest in the 65MW Scout Moor wind farm, one of the largest in the UK.  Peel Energy also sold its 50% interest in the Scout Moor wind farm to Munich Re.

Commenting on the sale Tom Murley, Head of HgCapital’s renewable energy team said: “The sale to MEAG represents a significant realisation for our first renewables fund. MEAG’s acquisition is in line with our investment strategy of building utility-scale platforms of high quality power generation assets with strong operating track records to create attractive assets for institutional investors seeking long term returns.  We have been building the UK wind portfolio since 2004, focusing on aggregating quality sites and driving operational performance.  The quality of the portfolio is evidenced by its average capacity factor of over 30%, well above the average UK onshore wind farm, and historic rates of high operational availability.”

Holger Kerzel, Managing Director of MEAG commented: “We are very pleased with this first investment in the UK.  MEAG has made a substantial commitment to investing in high quality renewable assets in Europe, and this portfolio exemplifies that quality.  We look forward to making more investments in the UK.”

The portfolio includes the 21.25MW Tir Mostyn wind farm in North Wales, the 16MW Bagmoor wind farm in Lincolnshire and the 65MW Scout Moor wind farm near Manchester.  Tir Mostyn, Scout Moor and Bagmoor became operational in 2005, 2008 and 2009 respectively.  Following the sale HgCapital still holds controlling interests in RidgeWind, which includes 44MW of wind farms in construction, 34MW fully permitted and ready to start construction and a pre-permitting pipeline in excess of 150MW.

Rob de Laszlo and Luigi Pettinicchio led the sales transaction for HgCapital.  RBC Capital Markets  was HgCapital’s financial advisor and Norton Rose LLP its legal advisor. Deloitte LLP, Wind Prospect Group and SgurrEnergy also advised HgCapital on the transaction.

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