Offshore Wind Farm

WFW advises PGGM on investment in German offshore wind farm Baltic 2

4 November 2015

Watson Farley & Williams (“WFW”) has advised Dutch pension fund manager, PGGM, on its acquisition of a significant interest in the German offshore wind farm, ‘Baltic 2’.

PGGM has invested in Baltic 2 through its PGGM Infrastructure Fund 2014 and as the lead investor in an international consortium.  The project is reportedly the first German offshore wind transaction to employ a ‘holdco financing’ structure.

Baltic 2 is majority-owned by German utility, EnBW Energie Baden-Württemberg AG.  It comprises 80 wind power turbines with a total capacity of 288 MW.  Due to high wind speeds at its location in the Baltic Sea, it is expected to generate over 1,200 Gwh of green power and 900,000 tonnes of CO2-offset on a yearly basis and to provide clean energy to 340,000 households.  The project is part of the Energiewende, the German policy of transition from nuclear and fossil power production to renewable energy, energy efficiency and sustainable development.

PGGM is a cooperative Dutch pension fund service provider. It offers its institutional clients services such as asset management, pension fund management, policy advice and management support. On 31 March, 2015, PGGM had EUR 199,9 billion in assets under management. The PGGM cooperative has approximately 686,000 members and is helping them to realise a valuable future. Either alone or together with strategic partners, PGGM develops innovative future solutions by linking together pension, care, housing and work.

The WFW project team was led by London-based Energy & Infrastructure partner, Paul Doris, who was supported by his colleagues Evan Stergoulis (partner) and associates, Natalie Georgiou and Emma Blake.  The German due diligence and project team was coordinated by Hamburg-based Corporate partner Stefan Hoffmann, with support from his colleagues Marcus Bechtel (partner, Corporate), Christine Bader (partner, Regulatory & Competition), Sven Fretthold (partner, Project & Structured Finance), Cathrin Browne (senior associate, Corporate) and Corporate associates Malte Koch, Carolin Woggon and Thomas Rieck.

PGGM was advised internally by Dennis van Alphen, Sjoerd van Krimpen and Maarten Schellingerhout.

WFW lead partner, Paul Doris, commented: “We are delighted to have advised PGGM on this innovative transaction, which serves as further evidence of WFW’s reputation as a leading adviser in the European offshore wind sector and more generally on large-scale, cross-border energy and infrastructure transactions.”