20 Dec 2019 . . Due diligence

Natural Power advises Cubico Sustainable Investments on sale of UK wind and solar portfolio

Natural Power has acted as technical advisor to London headquartered Cubico Sustainable Investments (Cubico) for the sale of a substantial minority stake in its UK wind and solar portfolio to GLIL Infrastructure LLP (GLIL), the £1.8bn infrastructure fund backed by Northern LGPS and Local Pensions Partnership.

Hannah Staab, Principal Advisor at Natural Power, said: “We were delighted to support Cubico on this sale. The wide range of project sizes, technologies and locations created some interesting technical challenges, but also allowed us to consider the opportunities to reduce long-term risk through maintaining a diverse portfolio.”

The transaction sees GLIL acquire a 49% equity stake in the portfolio, which has been operational for more than three years and comprises over 250 MW of wind and solar projects at 18 sites across the UK.

This is the seventh investment by GLIL, an open-ended fund established in 2015 to drive further direct investment in core UK infrastructure and support the long-term objectives of local authority pension funds. GLIL’s other investments include Anglian Water, Clyde Windfarm, Forth Ports and Rock Rail.

Cubico, which is backed by Ontario Teachers’ Pension Plan and PSP Investments, will provide long-term management services for the day-to-day operation of the assets.

David Swindin, Head of EMEA at Cubico, said: “This is a strategically significant transaction for Cubico and we are very pleased to have entered into this partnership for our UK operational portfolio. We look forward to working with GLIL and continuing to manage the portfolio to the highest standards as renewables play an increasingly important role in UK and global energy systems.”

Earlier this year, Natural Power advised Cubico for the refinancing of its UK renewables portfolio – one of the largest portfolio financings closed in the UK renewables market this year.

Natural Power’s global due diligence team provides services throughout all stages of the transaction cycle, from initial risk assessment and reporting in early transaction stages through to comprehensive reporting for credit-committee or data room presentation at final bid stage or financial close.

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