AIP: PKA sells uk offshore wind farm

3 November 2021

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