Dublin-listed energy investor Greencoat Renewables has acquired a portfolio of operating wind assets in France from the John Laing Group for €30.3 million.
The portfolio of three wind farms comes with 16-year long term fixed rate project finance and have an overall net enterprise value of €95 million.
Following the acquisition, Greencoat Renewables’ total installed capacity base will increase to 528.1 MW.
The acquisition marks the company’s first investment in the continental European renewable energy market.
The company said the assets will benefit from France’s “stable and supportive tariff regime” which guarantees a fixed price for the electricity produced by the asset.
All assets will benefit for fixed price Feed in Tariff (FIT) with a weighted average remaining FIT of 12.3 years.
The acquisition will close following French regulatory approval and will be funded by the company’s €380 million credit facility. Following the acquisition, Greencoat Renewables’ total borrowings will represent 43 per cent of gross asset value.
The portfolio comprises a 20 MW wind farm in the Burgundy region; a 21.6 MW wind farm in the Picardy region; and a 10.3 MW wind farm located in Saint-Martin-l’Ars.
An analyst with Davy said the acquisition was “consistent with its low-risk strategy to date. As in Ireland, these assets will contribute long-term (12.3 years), fully-contracted revenues to the portfolio”.
“Its ability to acquire highly secure cashflows suggests that Greencoat is one of a select group of companies whose growth model remains intact in the current environment.
“The recent stock performance, while understandable, is at odds with its unchanged near- and medium-term prospects.
“With 97 per cent of revenues contracted until the end of 2027 (economic concerns have no impact in this regard), the robustness of its cashflow and dividend is unaffected by global developments.”
The analyst said the company “represents an attractive buying opportunity” with the stock now trading at a discount to the last-announced net asset value. “We reiterate our outperform recommendation,” he added.
Greencoat Renewables investment manager Bertrand Gautier said: "Consistent with our long-term strategy, we are pleased to be making our first investment into the French wind market.
“Our existing portfolio already has 97 per cent of its cashflows contracted under REFIT until January 1st, 2028, and this acquisition further extends the proportion and duration of our fixed-price revenues.
“The acquisition will bring gearing to 43 per cent, which is towards the lower end of our target range and will provide flexibility to pursue further opportunities as they arise.
“We are also pleased to have partnered with John Laing, again demonstrating our ability to transact with leading investors and developers across the sector.”
