Global Infrastructure Partners III (GIP III) has agreed to acquire a 50% stake in the Germany-based Borkum Riffgrund 2 offshore wind farm from DONG Energy for €1.17bn.
The Borkum Riffgrund 2 wind facility, which is currently under construction, is located 59km off Norddeich harbour and 34km from the north of Borkum island.
DONG Energy will offer engineering, procurement and construction (EPC) contract, operation and maintenance services, and a map for power production market for the Borkum Riffgrund 2 project.
The wind farm, which will be commissioned in 2019, will generate 450MW of electricity, enough to satisfy the demands of 460,000 German households per year.
The acquisition marks the second joint venture between DONG Energy and GIP, following GIP’s purchase of 50% stake in the Gode Wind 1 Offshore Wind Farm in 2015.
DONG Energy Wind Power CEO and executive vice president Samuel Leupold said: “We’re pleased to be able to build on the partnership we established with GIP in relation to Gode Wind 1 in 2015. That partnership has been a success for all parties, and we’re committed to ensuring a similar success in relation to Borkum Riffgrund 2.”
GIP chairman and managing partner Adebayo Ogunlesi said: “DONG is a recognized leader in the energy sector and the pioneer in the development and operation of offshore wind farms, and this acquisition underscores GIP’s strategy of investing in superior quality projects and developing long-term strategic partnerships with industry leaders.”
The transaction, subject to regulatory approval, will close by the end of 2017.