Schroders, a London-based asset management firm, stated that it has agreed to pay $474.09 million for a 75 per cent stake in Greencoat Capital Holdings, a British renewables investor. Greencoat will become part of Schroders Capital, a private market branch of Schroders, as a result of this transaction. As per a company’s statement, the agreement is in keeping with the strategy to develop a complete private asset platform and strengthen its position in the long run. It will be known as be known as Schroders Greencoat.
Greencoat is a specialised investment management firm that engages in renewable energy infrastructure, such as wind, solar, biofuels, and heat. It owns and operates almost 200 power producing assets in the United Kingdom, Europe, and the United States, with a total net generation capacity of more than 3 GW. Greencoat’s U.S. launch in October 2021, follows investment in six wind assets in the U.S. These comprise a 24 per cent ownership in an 861 MW wind portfolio in South Texas and an 80 per cent stake in a 405 MW wind portfolio in Illinois.
In December 2020, Greencoat Renewables announced the acquisition of two wind farms from Starkraft under a forward sale model for Euro 123 million. The first of them is the Cloghan wind farm with a capacity of 37.8 MW which is located in the county of Offaly. The second is the Taghart wind farm located in the county of Cavan. Construction of the wind farm is set to begin soon and could be commissioned by the end of 2022.
REGlobal’s Views: With an aim to making their portfolios greener, investors are increasingly moving towards acquisition of large stakes in renewable energy firms and turning away from fossil fuel energy sources.These renewable energy firms, on the other hand, agree to sell their stake in order to raise finance for further expansion especially since renewable power assets continue to fetch good value in the market.