GLID Wind Farms acquired by the UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock

• UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock invest £423m in the acquisition of GLID from Centrica and EIG
• Lynn and Inner Dowsing offshore wind farm will now be 100% owned by non-utility investors – a first for the UK
• Complete ownership of the Glens of Foudland onshore wind asset will transfer to the BlackRock-managed funds
• Existing power purchase agreements with Centrica will remain in place

The UK Green Investment Bank Offshore Wind Fund and associated parallel funds (the Fund) and funds managed by BlackRock have acquired GLID Wind Farms TopCo Limited (GLID) from Centrica and EIG Global Energy Partners (EIG) in a transaction worth £423m.

The Fund will now own a 61% stake in the 194 MW, 54 turbine Lynn and Inner Dowsing offshore wind farms, located off the coast of Lincolnshire. The BlackRock-managed funds will own the remaining 39% of the projects.

The transaction marks the first time that operating offshore wind farms in the UK have been 100% owned by non-utility investors.

Complete ownership of GLID’s other operating asset, the 26 MW Glens of Foudland onshore wind farm in Aberdeenshire, Scotland, will be transferred to the funds managed by BlackRock.

An existing power purchase agreement (PPA) will see Centrica purchase 100% of the power produced by the wind farms and 50% of the Renewable Obligation Certificates (ROCs) until 2024. Centrica will continue to provide operations and maintenance (O&M) support to the projects until March 2017.

The Fund, managed by UK Green Investment Bank Financial Services Limited (GIBFS), is the largest private renewable energy fund in the UK with current capital commitments of £818m. Its portfolio now consists of five assets (see notes to editors) that, taken together, are capable of producing 3,970 GWh of net renewable electricity annually.

BlackRock’s infrastructure business has $8.3bn in investment and committed capital, including more than $2bn in equity capital focused on investment in renewable power projects via four funds and associated co-investment programmes. It currently owns and manages 66 wind and solar projects in Europe and North America on behalf of its clients.

"The unique partnership that we have entered into demonstrates the ability of the Offshore Wind Fund to capitalise on opportunities presented by the UK offshore wind sector, as well as highlighting the quality of existing assets in UK waters."

Karl Smith
Fund Manager, UK Green Investment Bank Financial Services

"This landmark transaction demonstrates BlackRock’s significant investment programme in the UK renewables sector. For investors, the sector can provide opportunities for less correlated, inflation-linked, long-duration income and attractive risk-adjusted returns."

Rory O'Connor
Managing Director, BlackRock