(Alliance News) - HICL Infrastructure PLC said on Friday that it had completed its acquisition of a 75% shareholding in the offshore transmission assets connected Hornsea II.
HICL is a London-based investment firm, managed by InfraRed Capital Partners.
The company said it was its fifth offshore electricity transmission investment through partnering with Diamond Transmission Corporation, and that it was an "availability-based and inflation-linked investment" in the UK's critical electricity transmission sector.
Hornsea II is an offshore wind farm located around 89 kilometres off the Yorkshire coast in the North Sea, with a capacity of 1.3 gigawatts, and an ability to provide power to 1.4 million homes.
HICL received the preferred bidder status from Ofgem for the assets associated with Hornsea II in September.
The investment in Hornsea Windfarm represents approximately 3.0% of HICL's portfolio, which was valued on March 31 as GBP3.77 billion, and will be funded by the company's GBP650 million credit facility.
The company expects to be drawn around GBP370 million, following this transaction and the proceeds of its disposal of Northwest Parkway.
"The company intends to continue its strategy of selectively realising assets to reduce the RCF balance and optimise portfolio construction," HICL said.
Shares in HICL were down 0.5% at 134.30 pence in London on Friday morning.
By Will Neill, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved
HICL Infrastructure (HICL)