CK Infrastructure Holdings (CKI), a key player in Hong Kong tycoon Li Ka-shing’s business empire, is expanding its international portfolio by acquiring 32 onshore wind farms in the UK. This acquisition marks CKI's third purchase of wind assets this year. The consortium, led by Li's infrastructure and energy flagship, has agreed to acquire the portfolio from Aviva Investors for approximately £350 million (US$448.5 million), as stated in their announcement.
The consortium comprises CKI and Li’s property flagship CK Asset Holdings, which will both hold 40 percent of the interests in the portfolio and Li’s international energy utility investment unit, Power Asset Holdings, which will hold 20 percent. “This acquisition bolsters CKI’s position in meeting the challenges of climate change by driving the sustainability transition, adding to CKI’s existing sustainability initiatives ranging from renewable gas generation and distribution to waste management and recycling to smart heating, [and] energy- and water-consumption tracking devices”, the statement said.
The portfolio includes 32 wind farms situated across England, Scotland, and Wales, with a combined installed capacity of 175 megawatts (MW). CKI states that this portfolio will deliver immediate returns, stable cash flow, and consistent profits. Revenue will come from government subsidies that are linked to inflation, power purchase agreements, and selling electricity on the market.
“This acquisition bolsters CKI’s position in meeting the challenges of climate change by driving the sustainability transition, adding to CKI’s existing sustainability initiatives ranging from renewable gas generation and distribution to waste management and recycling, to smart heating, [and] energy- and water-consumption tracking devices”, the statement said.
This is the third infrastructure investment made by CKI this year. On April 24, CKI formed a consortium with CK Asset and Power Assets to acquire Lionrai Investments No. 1, which owns 100 percent of natural gas network company Phoenix Energy, from NatWest Group Pension Fund and Utilities Trust of Australia for £757 million. Phoenix Energy is one of three gas distribution network operators in Northern Ireland. Its network covers nearly half of the local population, including Greater Belfast, and accounts for 78 percent of gas connections in Northern Ireland.
Two weeks later in May, CKI acquired UU Solar for £90.8 million. UU Solar manages 70 renewable power-generation assets in the UK, comprising 65 solar projects, four onshore wind farms, and one hydropower plant, totaling a combined installed capacity of 68.7 megawatts (MW). Most of the electricity generated is supplied to United Utilities Water, a water and sewerage company, while the rest is exported to the power grid.
Europe and Australia are the primary sources of profit for CKI. However, profits from Hong Kong and mainland China dropped by 40 percent in 2023, totaling HK$117 million, according to the company's annual report released in March. This decline was attributed to weak performance in its infrastructure materials manufacturing business due to a significant reduction in construction activity in mainland China. Despite this, CKI’s stake in Power Assets contributed positively, with net profit from this investment increasing by 6.4 percent year on year to HK$2.16 billion in 2023.