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Equitix & Balfour Beatty reach financial close on the £162.9 million Humber Gateway OFTO

07 Sep 2016

Balfour Beatty, the international infrastructure group, announced today that it has reached financial close on the £162.9 million Humber Gateway offshore transmission project. The Balfour Beatty Equitix Consortium, formed of Balfour Beatty Investments and Equitix, will own and operate the offshore transmission link to the Humber Gateway wind farm for the next 20 years.

The high-voltage electricity transmission link connects the 219MW offshore wind farm in the North Sea, 8km from the Yorkshire coast, to the onshore transmission grid. The 73 turbines are capable of generating enough electricity for around 170,000 homes each year. Balfour Beatty’s Power Transmission and Distribution business will be responsible for the operation and maintenance of the full OFTO assets, including one offshore and one onshore substation and two cable circuits consisting of 18 kilometres of subsea and 30 kilometres of land cable.Balfour Beatty Investments, part of the Balfour Beatty Equitix Consortium, will invest £12.5 million of the required equity of £21 million.

Ian Rylatt, Balfour Beatty Investments Chief Executive, said: “Balfour Beatty has extensive experience in investing in and managing OFTO schemes. Our technical expertise ensures we deliver energy to the grid efficiently and effectively, supporting the government’s ambitious targets to meet more of the UK’s energy needs through renewable sources.”

Hugh Crossley, Equitix’s Chief Investment Officer, said: “Equitix’s commitment to the offshore transmission market is testament to our investors’ appetite for long term, availability-based, inflation-linked, UK infrastructure. We are pleased to work in partnership with Balfour Beatty and Ofgem for the benefit of these pension fund investors and the broader community of stakeholders”.

Balfour Beatty and Equitix now own four OFTO projects, including the £317 million Greater Gabbard OFTO acquired in November 2013, the £164 million Thanet OFTO in December 2014 and the £352 million Gwynt y Môr OFTO in February 2015.

About Equitix:

Equitix was established in 2007 and is based in London. Equitix is an integrated core infrastructure asset management and primary project platform and typically invests in UK infrastructure projects with long-term revenue streams across the healthcare, education, social housing, highways and street lighting, offshore transmissions and renewable and waste sectors. Tetragon (TFG) owns 85% of the business; over time, TFG’s holding is expected to decline to approximately 74.8%. Management own the balance. Equitix Investment Management Limited is authorised and regulated by the UK Financial Conduct Authority.

This release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any state or jurisdiction.

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