Visit windpowermonthlyevents.com for the latest on our upcoming conferences and webcasts

United Kingdom

United Kingdom

Big profit on sale of UK portfolio blessed by Renewables Obligation prices

An impressive mark-up on the sales price of part of the largest wind farm portfolio in the UK demonstrates once more that the country's Renewables Obligation is delivering highly attractive returns for investors. Bahrain-based Arcapita Bank sold its entire 33.33% stake in Zephyr Investments for £145 million, making it one of Arcapita's most profitable investments to date, according to the bank. "The divestment of our interest after a three year holding period will allow our investors to generate a substantial return on their original investment," says CEO Atif A Abdulmalik. Zephyr owns 17 operating wind farms built by npower renewables, including the 60 MW North Hoyle offshore wind farm. The total 391 MW represents nearly 20% of installed wind capacity in the UK. Arcapita sold its share of Zephyr 50-50 to existing shareholders Infracapital Partners LP, an infrastructure fund managed by Prudential M&G, and a subsidiary of an investment entity advised by JPMorgan Asset Management. The 33.33% share in Zephyr not held by Infracapital and the unnamed investment company is still held by existing investor RWE npower, which owns npower renewables. Arcapita, under its former name of First Islamic Investment Bank, was involved with the Zephyr portfolio since it was first put up for sale in 2004. The two other original partners were RWE npower and Englefield Capital, which sold its one-third stake to Infracapital Partners and the investment company advised by JPMorgan in June this year. Stephen Lilley from Prudential M&G comments: "Renewable energy delivers strong stable returns with real growth potential and the opportunity to increase our interest in such a high quality operational portfolio was too good a prospect to ignore."

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Windpower Monthly Events

Latest Jobs