AIP Management's ESG Report for 2022 is now published! We are pleased to publish AIP’s 2022 ESG report. 2022 was a year of economic and geopolitical turmoil, and whilst this made for a challenging environment, it also emphasised the need to invest even more in a long-term…
PKA sells UK offshore wind farm
AIP Management is pleased to announce that it has successfully divested PKA’s 25% stake in Burbo Bank Extension to the UK renewable fund manager Greencoat (on behalf of Greencoat UK Wind PLC and Greencoat Renewable Income LP) for a price of approximately GBP 400 million. PKA originally invested GBP 330 million in the UK offshore wind farm alongside KIRKBI and Ørsted nearly six years ago. The divestment secures PKA and its members a double-digit unlevered return on the investment.
The sale of Burbo Bank Extension pleases Jon Johnsen, CEO of PKA: “When investing in infrastructure, we do so with a long-term horizon of between 25 and 30 years. Therefore, it is unusual to sell after only six years. In this case, we received an offer that provides an attractive return for our members, which we have chosen to accept” says Jon Johnsen.
In AIP’s latest fund, AIP Infrastructure II, PKA committed approximately half of the total EUR 4 billion fund. The proceeds from the sale of Burbo will be recycled into new energy transition projects via AIP.
To AIP, the divestment of Burbo Bank Extension is a proof of concept for the platform and the many renewable energy investments made by AIP, explains Kasper Hansen, Managing Partner at AIP Management.
“We are very pleased with the successful sale of Burbo Bank Extension, which we have managed for the past six years in a strong partnership with KIRKBI and Ørsted. We are happy to see the value it has created for the members of PKA while at the same time contributing significantly to the green energy transition.” says Kasper Hansen
About Burbo Bank Extension:
Burbo Bank Extension is a 258 MW offshore wind farm located 7km off the coast of Liverpool in the UK. Ørsted developed the wind farm and is currently operating it, while holding a 50% equity stake in the asset. The wind farm was completed in 2017 currently supplies renewable electricity to approximately 230,000 UK households. Until the divestment PKA held a 25% equity stake – via AIP – alongside LEGO investment arm KIRKBI (25%) and Ørsted (50%)
About AIP Management
AIP Management is a Danish investment manager dedicated to investing into energy and infrastructure assets in Europe and the US. To date, AIP has invested more than EUR 4 billion primarily in assets that contribute to the green transition, including six European offshore wind farms, three onshore wind farms in Sweden and the US, and four large solar power plants in California and Texas. The existing investments deliver sustainable energy to cover the equivalent of 2.2 million households’ consumption and save more than 3 million tonnes of CO2 on an annual basis. For more information, please visit www.aipmanagement.dk.