Windfarm sells for €10.9m
KNOCKNALOUR windfarm, just outside Bunclody, has been purchased by a Dublin-listed energy group for a whopping €10.9million. Greencoat Renewables last week announced that the Wexford windfarm had become its tenth acquisition in recent months, having purchased the asset from a ‘group of local developers’.
This latest announcement comes hot on the heels of a deal earlier this month which saw Greencoat acquire national forestry company Coillte’s stake in four wind farms for a total of €136million.
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.
Greencoat investors were told that the bolt-on acquisition will add three per cent to the company’s pro forma installed capacity.
‘Commissioned in September 2013, the asset is slightly older than other wind farms in the portfolio,’ said analyst at the Davy Group, Michael Mitchell. ‘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.’
This 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.