Transaction: Ørsted Sells 50 Percent Stake in North Sea Offshore Wind Farm Gode Wind 3

Fredericia, Denmark - Ørsted has signed an agreement to sell 50 percent of the Gode Wind 3 offshore wind farm in Germany to funds managed by Glennmont Partners from Nuveen (Glenmont).

Glennmont is one of the largest fund managers in Europe focused exclusively on clean energy infrastructure investments. It is owned by Nuveen, a TIAA company and global asset manager with over $1.1 trillion in assets under management and one of the 20 largest infrastructure managers in the world.

Gode Wind 3 has a capacity of 253 MW and was awarded to Ørsted in 2017 and 2018 as two separate projects with a weighted average feed-in tariff of EUR 81 per MWh. Gode Wind 3 is currently under construction together with the Borkum Riffgrund 3 offshore wind farm, where Ørsted and Glennmont are already 50/50 owners. In addition, Glennmont is also co-owner of Ørsted's Gode Wind 1 offshore wind farm.

The Gode Wind 3 transaction is valued at EUR 473 million (approximately DKK 3.5 billion) and includes the price for the acquisition of the 50 percent ownership stake in the offshore wind farm and the commitment to finance 50 percent of the construction of Gode Wind 3. Gode Wind 3 is expected to be operational in 2024.

"We continue to see strong investor interest for offshore wind farms, and we’re very pleased to once again welcome Glennmont as a co-owner of one of our German offshore wind farms", said Peter Obling, Head of Central Europe at Ørsted, welcoming the investment. "This third investment in German offshore wind with Ørsted continues and strengthens our successful partnership. Ørsted is a recognized leader in the offshore wind sector, and this acquisition underscores Glennmont’s strategy of investing in superior quality projects and developing long-term strategic partnerships with industry leaders", added Francesco Cacciabue, CFO and Partner at Nuveen's Glennmont Partners.

The transaction is expected to close in the coming months, subject to regulatory approvals.

Ørsted shares are on the rebound today after a sharp drop halfway through last week. Around noon, the RENIXX Group is trading up 3.4 percent at a price of 44.53 euros (12:25 p.m., Oct. 17, 2023, Stuttgart Stock Exchange). Compared with the price at the turn of the year, this is a drop of almost 50 percent.

Source: IWR Online, 17 Oct 2023