The energy supplier will continue to operate and maintain the windfarms – two in Scotland and two in Northern Ireland – which have a total generation capacity of 79.5MW.
Under the deal, SSE has set up power purchase agreements for three of the windfarms, totalling 43.5MW. The firm will also to invest up to £43 million in shares in the new fund.
Gregor Alexander, finance director of SSE, said: “Fundamentally, SSE owns generation capacity to meet the electricity needs of its own customers, which is why we were pleased to be able to establish new PPAs before disposing of these assets.
“The proceeds from these disposals will support our investment in new renewable assets in the coming financial year.”
The deal is subject to successful market capitalisation of Greencoat UK Wind, which today announced its intention to raise £205 million on the London Stock Exchange. The Department for Business, Innovation and Skills has committed to subscribe to 50 million shares, it said.
Tim Ingram, non-executive chairman of Greencoat UK Wind said: “With an anticipated initial dividend yield of 6%, limited planned gearing, and investment only in proven operating wind farms, Greencoat UK Wind offers a very attractive opportunity for investors seeking a sustainable and growing return on their investment.”