Greencoat Capital makes first investment in U.S. renewable energy market

Greencoat investment

Greencoat Capital, a global energy investment manager, has made its first investment in the U.S. renewables market, by acquiring a 24% stake interest in an 861 megawatts portfolio of four wind farms located in Texas.

The acquisition was made by Greencoat Vela LLC, an investment vehicle established with the only purpose of buying the portfolio. Greencoat Vela was funded in partnership with Greencoat’s clients BAE Systems Pension Funds Investment Management and Towers Watson Investment Services.

This marks the first investment made by the company in the U.S. market. The company is not new to the sector, as it manages over $8 billion of asset investment in Europe. It’s “secure income” model “aims to provide investors with predictable, stable income on a long term, buy and hold basis.”

“Many of the leading developers in the US are parties well known to Greencoat from its existing activities in Europe,” as the company statement reads.

According to the company, this will not be the only investment in the U.S. market; it expects to keep building on this basis and to expand energy investment activities in the U.S.

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Four wind farms in portfolio acquired by Greencoat Vela

The portfolio acquired by Greencoat Vela is composed by the Stella, Cranell, East Raymond and West Raymond wind farms. Vela’s 24% stake interest was acquired from RWE, which announced the sale back in 14 December, 2020.

As of now, the portfolio is owned by 24% by Vela, 51% by Algoquin Power, and 25% by RWE. Still, RWE remains as the ever-day operator of the facilities and assets.

“Our company is delighted to partner with two leading institutional investors to invest in further assets developed and managed by RWE, following from the recently announced £648m investment in RWE’s Humber Gateway offshore wind farm in the UK,” said the company in regards to the deal.

Commercial closings in regards to Stella, Cranell and East Raymond will occur by this very month, January 2021; while West Raymond commercial closing will be closed around March 2021, when the wind farm enters into operations.

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