Popular UK listed income fund Bluefield Solar has announced it has entered into a conditional sale and purchase agreement to acquire a portfolio of 109 small scale onshore wind turbines located in the UK for an aggregate consideration of approximately £60 million (including working capital) from Arena Capital Partners Limited.

The wind portfolio acquisition, which is unlevered, is expected to be accretive to the company's target dividend. In addition, the acquisition has been structured to provide the trust with the opportunity to re-power 17 of the wind turbines comprised within the wind portfolio.

Each of these 17 wind turbines is located in Northern Ireland and the ability of the company to re-power such turbines is conditional upon each turbine respectively receiving the necessary planning, regulatory and construction consents, which have already been received in respect of five of the wind turbines. The total potential investment in the Wind Portfolio could increase to approximately £95 million.

Furthermore, Bluefield Solar intends to publish a prospectus in support of an initial equity issue comprising an initial placing, open offer and offer for subscription and a subsequent placing programme. Under the initial issue the company will seek to issue up to 84.7 million new ordinary shares at the Issue Price of 118 pence to raise gross proceeds of up to approximately £100 million.

John Rennocks, Chairman of Bluefield Solar, said: "Following the mandate change approved in 2020, allowing the Company to invest in wind and other renewable energy sources and a careful review of best available opportunities, the board is pleased to announce the Company's first investment in non-solar assets. We view the acquisition as highly complementary to the existing portfolio in respect of energy generation profile, geographic location and the high levels of regulated revenue are accretive to the Company's dividend targets."