Global Renewables Investment Manager Expands To U.S. With Investment In Texas Wind Portfolio

Greencoat Capital LLP (Greencoat) announced the acquisition of a 24% stake in an 861 MW portfolio of four onshore wind farms located in coastal South Texas (the Portfolio) by Greencoat Vela LLC (Greencoat Vela), an investment vehicle established for the sole purpose of investing in the Portfolio, funded in partnership with clients of BAE Systems Pension Funds Investment Management Limited (BAPFIM) and Towers Watson Investment Services, Inc. (TWIS).

The Portfolio comprises the Stella, Cranell, East Raymond and West Raymond wind farms. Greencoat Vela’s 24% stake is being acquired from RWE and follows the announcement on 14 December 2020 of the sale by RWE of a 51% stake in the Portfolio to a subsidiary of Algonquin Power & Utilities Corp (Algonquin). The Portfolio will thus be owned 51% by Algonquin, 25% by RWE and 24% by Greencoat Vela. RWE will continue as the day-to-day manager and operator of the wind farms.

The transaction marks the first investment in the US by funds managed by Greencoat, a global renewables investment manager, with over $8 billion of assets under management.

Further US wind and solar investments are expected as Greencoat builds on its leading position in European renewables by expanding its activities in the US, the company said

Closings in relation to Stella, Cranell and East Raymond are expected to occur in January 2021, and in relation to West Raymond in March 2021 following West Raymond entering into commercial operation and following its consequent tax equity closing. Greencoat Vela’s 24% investment in the Portfolio is unlevered and is expected to total approximately $160m.