Sale of 320MW German offshore wind farm “Nördlicher Grund”

Augusta & Co acted as exclusive adviser to a German development business owned by Morgan Stanley and US/Italian investment funds on the sale of the 320MW permitted Nördlicher Grund project.

The sales process commenced in 2008 and was conducted against a backdrop of challenging market dynamics and permit expiration issues. Multiple parties were approached over time and the project was specifically held away from the market during the worst market turmoil in 2009/10.

After re-launching the process in 2011 strong interest was developed and a bidder short-list selected to proceed to final negotiations.

The sale strategy was designed to maximise up-front cash component and provide a deliverable earn-out subsequently.

Mortimer Menzel who led the transaction at Augusta said:

“This transaction was only the second time that a pure financial investor acquired a German offshore wind project, the first being the Blackstone acquisition of Meerwind. The transaction closed despite very challenging conditions in the German offshore equity market which is a credit to all who were involved.”

The transaction closed in August 2011