The GIB fund will take control of a 61 per cent stake in the 194MW, 54 turbine Lynn and Inner Dowsing offshore wind farms located off the coast of Lincolnshire.
The BlackRock-managed funds will own the other 39 per cent of the projects, as well as the 26MW Glens of Foudland onshore wind farm in Aberdeenshire.
The wind projects are being purchased from Centrica and EIG Global Energy Partners. Centrica’s net share of the proceeds will be approximately £115 million.
Centrica will continue to purchase 100 per cent of the power and 50 per cent of the Renewable Obligation Certificates (ROCs) from the three wind farms under existing power purchase agreements (“PPAs”) until 2024.
“The sale is in line with Centrica’s strategy to dispose of its interests in wind power generation, while continuing to purchase wind power,” the company said in a statement.
The transaction marks the first time that operating offshore wind farms in the UK have been 100 per cent owned by non-utility investors.
‘Promising sector’
The UK GIB Offshore Wind Fund is the largest private renewable energy fund in the UK with current capital commitments of £818 million. Its portfolio now consists of five assets that, taken together, are capable of producing 3,970 GWh of net renewable electricity annually.
Fund managing director Karl Smith said: “The unique partnership that we have entered into demonstrates the ability of the Offshore Wind Fund to capitalise on opportunities presented by the UK offshore wind sector, as well as highlighting the quality of existing assets in UK waters.”
Blackrock – the world’s largest asset manager with more than $4.5trn under management – now owns and manages 66 wind and solar projects in Europe and North America on behalf of its clients.
BlackRock managing director Rory O’Connor said: “This landmark transaction demonstrates BlackRock’s significant investment programme in the UK renewables sector. For investors, the sector can provide opportunities for less correlated, inflation-linked, long-duration income and attractive risk-adjusted returns.”
A version of this news story originally appeared on edie.net