EnergyWatch

CIP profits from selling stake in German offshore wind farm

The Danish infrastructure fund has earned millions of euros on divesting of its quarter share of German offshore wind farm Veja Mate after less than two years of operations.

Photo: Veja Mate

Copenhagen Infrastructure Partners (CIP)'s ownership of Veja Mate ended up a short-lived affair, according to an announcement from the fund.

Less than two years after the 402 MW German offshore wind farm became fully operational, CIP and Highland Group divested of their stake to a consortium made up of Commerz Real, Ingka Group – former IKEA Group – Wpd Invest and KGAL. The third co-owner, Siemens Financial Services retains its 20 percent ownership stake.

However, the short-lived ownership still brought in gains. The buyers have disclosed that they sold their 80 percent of the project for EUR 2.3 billion, of which CIP's 23.4 percent stake accounted for EUR 538 million.

The total investment sum, when the final investment decision was made in 2015, was only EUR 1.9 billion, a figure which the project kept "well within" as it was phrased when the farm began full operations four months early at the end of May.

On the basis of all other considerations, the four-fifths sold off amounted to EUR 780 million, with EUR 182.5 million going to CIP's 23.4 percent of the project. These calculations do not factor in power sales or German subsidies from the farm, which has an estimated production of 1,600 GW annually. 

Copenhagen Infrastructure Partners declined to comment on the divestment to EnergyWatch.

"After financial close of the Veja Mate project in June 2015 and the subsequent delivery of the 402 MW offshore wind farm four months ahead of schedule and below budget, the divestment of CI-II’s 23.4 percent ownership stake has been a good opportunity for CIP and its investors to realize part of its investment in Veja Mate," says Michael Hannibal, Partner at CIP, in the company announcement.

"CI-II continues to be a debt provider to the project company, which provides a long-term stable cash flow to its investors."

CIP's direct investment in Vieja Mate back in 2015 occurred via a mezzanine loan valued at EUR 250 million.

At that time, CIP partners had a completely different role in the project. Vieja Mate is installed with 67 SWT-6.0-154 turbines delivered by Siemens Wind Power at the time Michael Hannibal was CEO of the offshore wind division.

English Edit: Lena Rutkowski

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