Coillte explores sale of stakes in four wind farms

Semi-state body says it may realise more than €125m in current market

Fergal Leamy, chief  exeutive of Coillte. Photograph: Nick Bradshaw

Fergal Leamy, chief exeutive of Coillte. Photograph: Nick Bradshaw

 

Coillte has begun the process of putting up for sale its stake in four wind farms it co-developed with ESB, SSE and Bord Na Móna.

The semi-state body is looking to sell its 50 per cent stake in its joint venture wind farms at Raheenleagh, Cloosh Valley and Castlepook, and a 25 per cent stake in Sliabh Bawn.

The move comes following Coillte’s announcement last October that it would explore the potential sale as part of a strategy to develop more than 1,000MW of future renewable energy projects.

The four farms represent a net operating capacity of 104MW on an equity basis, and are the product of a €25 million investment by Coillte in the past four years. The body said it expected in the current market that it could achieve a value of more than €125 million.

Coillte would also continue to receive long term lease income from the farms, as they are located on its lands.

Critical milestone

The body is also seeking interest from prospective investors for the potential future acquisition of two wind farm projects currently in final planning review.

“Today’s announcement marks a critical milestone for Coillte as it illustrates the significant value that we have created over the last few years,” said Fergal Leamy, chief executive of Coillte. “Whether we achieve our sales price expectations or ultimately decide to retain an ongoing dividend flow from these assets, these wind farms are an impressive set of projects, delivering clean energy, demonstrable economic value and real value to the local communities. The fact that we have realised assets with an equity investment of €25 million that may trade for a value greater than €125 million illustrates the potential value we can create from every hectare of land we own to ultimately deliver enhanced value for our shareholder, the State.”