New Zealand-based renewable energy company Meridian Energy has offloaded its 50% stake in a 420MW Macarthur wind farm in Australia to Malakoff, a Malaysian power generator and retailer in deal valued at A$659m ($601.8m).

The project was developed as a part of an equal joint venture between Meridian and AGL. The operational rights were held by AGL.

Commenting on the sale, Meridian chief executive Mark Binns remarked that although the investment such as Macarthur was to be held for a long time, the low interest rate environment along with other prospective options led the company to divest its stake in the project.

"The sale of our share in Macarthur, at an Enterprise Value of A$659 million, has delivered a return that reflects our early stage involvement in development, and our investment in construction plus capitalised interest, holding costs and other expenses," added Binns.

"This shows that Meridian’s renewable led strategy is in good shape."

Featuring 140 Vestas 3MW turbines, the Macarthur wind farm has the capacity to power more than 220,000 households in Victoria State of Australia.

Meridian is currently working on a 131MW Mt Mercer wind farm comprising 64 turbines, and it is located 30 km south of Ballarat.