DAVY VIEW

Greencoat Renewables has announced that it will acquire an additional 16% stake in Butendiek, bringing its equity holding in the asset to 39%. While relatively small in a group context, it is a good example of the selective opportunities it will consider in the current environment – the price paid (€2.6m/MW) is materially better than the original Q1 23 transaction (€2.85m/MW) and is described as “accretive to net asset value (NAV)”. Gearing will be 48% before its cash balance is considered, and it will remain close to 50% when all other forward sale agreements are completed. Separately, confirmation that Butendiek has put one of the largest corporate power purchase agreements (PPAs) in place in Germany to date also means that the growth has not sacrificed the predictable nature of portfolio cashflows.