The Caisse de dépôt et placement du Québec has agreed to acquire a stake in the world’s largest wind farm off the coast of the United Kingdom.
It will pay £644 million ($1.2 billion) to Denmark’s DONG Energy for half of its 50% share in the 630-megawatt wind farm called London Array 1.
Once the sale is complete, they will each hold 25% interest in the farm. German utility E.On and the United Arab Emirates-based Masdar will continue to own 30% and 20% of London Array 1, respectively.
“This is an opportunity for us to invest, alongside established partners, in a quality asset in a growth-driven sector,” says Macky Tall, senior vice-president, infrastructure, at the Caisse. “We are investing in this project with a long-term horizon and expect to generate attractive returns for many years ahead.”
The transaction is subject to a number of customary conditions for a transaction of this nature, including transfer of project rights and operational performance of the wind park and approval by relevant authorities. The transaction is expected to be completed in the first half of 2014.
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