Keppel Infrastructure Trust (SGX:A7RU) and Keppel Renewable Investments Pte. Ltd has entered into a sale and purchase agreement to acquire 25% stake in Borkum Riffgrund from Gulf International Holding Pte. Ltd for €305 million on August 11, 2022.

Under the terms of transaction, Keppel Infrastructure Trust & Keppel Renewable Investments Pte. Ltd., will acquire approximately 20.5% & 4.5% stake in German Offshore Wind Farm. Transaction is financed from combination of internal sources of funds, equity and/or debt capital market issuances and/or external borrowings.

Upon completion of this investment, and including the proposed investment in the European onshore wind platform and the proposed acquisition in Eco Management Korea, AUM will grow by 30% as at June 30, 2022. Remaining 50% of the partnership interest held by Ørsted Wind Power A/S in Borkum Riffgrund .The Transaction is subject to customary closing conditions, including merger clearance and foreign direct investment clearance approvals from Germany. The transaction is expected to be completed in the fourth quarter of 2022.

Transaction seems to be an accretive investment with attractive returns. Sebastian Schneider, Thorsten Mäger, Jan Bonhage, Andreas Breier and Jörg Meinzenbach of Hengeler Mueller provide legal advised in transaction. Mathias Elspass, Björn Heinlein, Florian Mahler, Tobias Nogami Kamerling, Andreas Ruthemeyer and Dominik Heß of Clifford Chance, Düsseldorf acted as a legal advisor to Keppel Infrastructure Trust.