London, 8th January 2019: Foresight Group (“Foresight”), a leading independent infrastructure and private equity investment manager, is pleased to announce it has completed the acquisition of the 45 MW Krackow and 5 MW Seubersdorf windfarms, respectively located in Mecklenburg – Western Pomerania (north-east Germany) and in Bavaria in southern Germany. Foresight has made this acquisition in partnership with Korea Investment & Securities (“KIS”).
The acquisition heralds the continuation of Foresight’s international renewables growth strategy and is its first wind acquisition in Germany. It sees Foresight’s wind portfolio further expand following acquisitions in 2018 of the 83 MW portfolio from Belltown Power, the 14 MW North Pickenham site in Norfolk, and the 12 MW portfolio in Northern Ireland. It also marks its further expansion into Germany following its investment into a portfolio of AD plants previously owned by Lindhorst Gruppe in June 2018.
The two windfarms have been acquired from a subsidiary of wpd AG (“wpd”), one of Europe’s leading wind energy developers and operators, who managed the original development, financing and construction of the sites. The Krackow windfarm has been operational since Q4 2015 and comprises 15 Vestas V112 wind turbine generators with Vestas also providing long-term O&M services. The Seubersdorf windfarm has been operational for one year longer, commissioned in Q4 2014, and consists of two GE 2.5-120 WTG turbines with GE as the long-term O&M provider.
Both projects benefit from ongoing operational management services provided by wpd windmanager, a wholly-owned subsidiary of wpd, and receive 20-year, fixed revenues under the German Renewable Energy Act (“EEG”).
The acquisition consolidates Foresight’s position as a leading investor across the renewables spectrum with wind generation assets under management now 165 MW, complementing the 1.1 GW generated from global solar projects and 115 MW from UK and European bioenergy projects, on top of the 45 MW of utility scale battery storage and 160 MW of reserve power assets.
Foresight, which opened its Seoul office in early 2018, has been working with Korean investors for almost two years, having made its first renewable energy acquisition on behalf of KDB KIAMCO and Hanwha Energy in Australian Solar in February 2017, since when it has made further solar acquisitions on behalf of Korean investors in Australia and the UK.
Carly Magee, Partner, Foresight Group said: “We are delighted to have completed the acquisition of this sizeable German wind portfolio and to have established a relationship with wpd, one of the leading wind developers in the world and an excellent counterparty to work with.”
Bernard Fairman, Chairman of Foresight added “This significant acquisition further strengthens Foresight’s diversified energy infrastructure portfolio of renewable generation technologies and supporting infrastructure. We are pleased to have entered the German wind market, to continue to partner successfully with Korean investors and to have consolidated Foresight’s market-leading renewables investment presence in Europe.”
Jason Sim, Head of Energy & Infrastructure Team of KIS commented: “We are delighted to have collaborated once again with Foresight on the acquisition of the wpd wind farms. This is our first German wind transaction and it has been a pleasure to work alongside the experienced team at Foresight and together we expect to explore further renewable opportunities in Europe and globally as we grow our portfolio of overseas infrastructure assets.”
Foresight was advised by Osborne Clarke (legal), K2 Management (technical) and PWC (financial and tax).