SSE sells stake in Clyde wind farm for £355m to London and Manchester pension funds

A Siemens wind turbine at the Clyde wind farm
A wind turbine at the Clyde wind farm

Perth-based SSE has sold 49.9% of its operational 349.6MW Clyde Wind Farm in South Lanarkshire to Greencoat UK Wind and GMPF & LPFA Infrastructure Ltd LP for £355 million.

 When the 172.8MW extension to Clyde is commissioned (currently under construction, with completion expected in June 2017) the equity stake jointly owned by UKW and GLIL will be diluted to 30% with SSE retaining 70%.

This shareholding implies a combined valuation of the two wind farms of £2.27* million per MW.

 In addition to completing the construction of the extension, SSE will provide management services for the day to day operations of all 522.4MW as well as long-term route to market PPA’s. Siemens will provide turbine O&M services.

London Pensions Fund AuthorityThe GMPF & LPFA Infrastructure LLP (GLIL) is a joint venture between the Greater Manchester Pension Fund and London Pensions Fund Authority, established to increase their exposure to infrastructure.

Greencoat UK Wind Plc is a renewable infrastructure fund which is solely invested in 18 operating UK wind farms with net generating capacity of 399 MW (including the acquisition of Clyde).

In March 2014 SSE announced a disposal programme with intended proceeds and debt reduction of £1 billion from the sale of non-core assets and businesses and the sale of existing and/or in-development onshore wind farms.

Martin Pibworth, Managing Director, SSE Wholesale, said: “The sale represents another significant step in a programme of disposals to recycle capital and optimise our wind farm pipeline. The proceeds from this disposal will help to support our future investments in a balanced range of energy assets.”

*The structure of the transaction implies a valuation of £2.03m/MW for the existing Clyde wind farm and £2.70m/MW for Clyde extension when built.

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