Danish pension fund PKA has scored £70m ($95.3m) by selling its 25% stake in the Burbo Bank Extension offshore wind farm to UK renewable fund manager Greencoat on behalf of Greencoat UK Wind and Greencoat Renewable Income.
Greencoat paid around £400m ($545m) for PKA’s stake, which originally invested £330m ($449.6m) in the UK offshore wind farm alongside Kirkbi and Ørsted nearly six years ago. The proceeds from the sale of Burbo will be recycled into new energy transition projects via AIP.
“When investing in infrastructure, we do so with a long-term horizon of between 25 and 30 years. Therefore, it is unusual to sell after only six years. In this case, we received an offer that provides an attractive return for our members, which we have chosen to accept,” said Jon Johnsen, CEO of PKA.
Burbo Bank Extension is a 258 MW offshore wind farm located 7 km off the coast of Liverpool. Ørsted developed the wind farm and is currently operating it while holding a 50% equity stake in the asset. The wind farm, which was completed in 2017, currently supplies renewable electricity to approximately 230,000 UK households. Until the divestment PKA held a 25% equity stake – via AIP – alongside Lego investment arm Kirkbi 25% and Ørsted 50%.