HgCapital, the European sector-focused private equity and renewable energy investor, has today announced the sale, finalised at the end of December 2013, of three operating UK onshore wind farms to funds advised by Resonance Asset Management LLP for an undisclosed sum.
The three wind farms, located on industrial sites in Cumbria, Lancashire and South Wales, have a capacity of 11.05MW. The investments were made by HgCapital Renewable Power Partners, HgCapital’s first renewable energy fund. The sale completes the exit of the fund’s UK investments following the sale of the RidgeWind investment to Munich Re and Blue Energy.
Commenting on the sale Tom Murley, Head of HgCapital’s renewable energy team said:
“We originally started developing the UK wind portfolio in 2004, focusing on high quality sites and driving operational performance. Now mature and de-risked, these assets provide a sound operating base that will generate stable, inflation-linked cash flows for another 20 years, which is of increasing interest to investors like Resonance.”
Nick Wood, founder and CIO of Resonance commented:
“This is our third investment in the UK onshore wind sector. These high quality assets match our investment objectives of consolidating the fragmented UK small and medium-sized wind farm industry to create a diversified, income generating, real asset portfolio for our institutional investors.”
The portfolio includes two 2MW wind turbines located at the Eastman Chemical Co. site in Workington, Cumbria, two 2.5MW wind turbines located at the Eastman Chemical Co. site in Newport, South Wales, and one 2.05MW turbine located at the Dewlay cheese production facility in Garstang, Lancashire.
Rob de Laszlo, Andrew Clements and Olivier Delpon de Vaux led the sales transaction for HgCapital. Ernst & Young LLP was HgCapital’s financial advisor and Norton Rose LLP its legal advisor. Deloitte LLP and Wind Prospect Group also advised HgCapital on the transaction.
Nick Wood, Francesca Collins and Orlando Hilton led the investment for Resonance. Pinsent Masons acted as legal advisor to Resonance and its funds.