Octopus Renewables Acquires Minority Stake in UK Offshore Wind Farm

UK-based investment company Octopus Renewables Infrastructure Trust (ORIT) has struck a deal to acquire a 7.75 per cent ownership interest in the Lincs wind farm offshore England.

According to ORIT, the acquisition is expected to be completed in the second quarter of this year once the needed consents from existing investors and lenders are secured.

The Lincs offshore wind farm is owned by UK Green Investment Bank Financial Services, Ørsted (formerly named DONG Energy), Macquarie European Infrastructure Fund 5, and other funds.

Following the completion of the transaction, ORIT estimates that the offshore wind farm will represent around 10 per cent of its portfolio on a gross asset value basis.

The financial terms of the deal have not been disclosed.

“Our investment into Lincs is ORIT’s first into an operational offshore wind farm, and will provide us with an additional revenue generating asset, that benefits from the favourable ROC subsidy regime and gives ORIT further portfolio diversification. The acquisition will also strengthen ORIT’s relationships with leading investors and operators in the offshore sector,” said Phil Austin, Chairman of ORIT.

Lincs offshore wind farm has an installed capacity of 270 MW, made up of 75 turbines each of 3.6 MW, spread across around 35 square kilometres.

The construction of Lincs, located 5 miles off the coast of Skegness, North Lincolnshire, started in 2010.

The wind farm was officially opened on 1 August 2013.

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Photo: Lincs offshore wind farm. Source: Centrica (archive)