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Hermes GPE buys into UK’s largest onshore wind farm

13 Dec 2013

UK-based private investment group Hermes GPE has acquired a majority interest in the 144MW Fallago Rig wind farm in Scotland.

Funds under management by Hermes GPE Infrastructure have agreed to acquire a majority interest in the farm, located on the Roxburghe Estate in Scotland from EDF Energy and EDF Energies Nouvelles.

No third-party debt was required for the acquisition.

The Fallago Rig is the fifth largest onshore wind farm in the UK. Construction began in 2012, with generation commencing January 2013 and full production in April the same year.

EDF will continue to own equity in the farm, and EDF Energy Renewables will continue with its operations, maintenance, and asset management services at the site. EDF Energy holds the power purchase agreement on the farm.

Peter Hofbauer, head of infrastructure at Hermes GPE, said, “The renewable energy sector is a key area of interest for us, and Fallago Rig has very attractive investment characteristics. Our investment strategies focus on UK infrastructure assets that have a natural linkage to UK inflation, benefit from clear regulatory support mechanisms, with long-term stable and predictable cash flows, and solid yield characteristics.

“We are delighted to establish this long-term partnership with EDF, a leading European utility. We look forward to working closely with EDF and other key stakeholders in relation to this investment, including the local community which for the life of the project will continue to benefit from an annual contribution of £240,000 from the Fallago Rig Wind Farm and the Roxburghe Estate to a fund managed by the Tweed Forum.”

Earlier this year the firm acquired a 50 per cent stake in the 72MW Braes of Doune wind farm in Stirlingshire, Scotland, for £59m in cash.

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