Greencoat Renewables is entering the German market by buying half of the Borkum Riffgrund 1 offshore wind farm that is operated by Danish utility Orsted.

The renewables investment manager has reached an agreement to buy a 31.5% stake in the 312MW array in the North Sea from Kirkbi and another 18.5% from William Demant Invest for a combined cash consideration of about €350m ($386m). Orsted remains a 50% shareholder.

“We are very pleased to enter the continental offshore wind market with a significant strategic stake in Borkum Riffgrund 1,” Greencoat investment manager Bertrand Gautier said.

“This acquisition will contribute to Greencoat Renewables’ strategy to build a diversified portfolio of high-quality renewable electricity generation assets supported by strong contracted cash-flows and will support the Company’s further expansion into continental Europe.”

Borkumm Riffgrund 1 is located in Germany’s exclusive economic zone in the North Sea and consists of 78 Siemens Gamesa 4MW turbines that have been operational since 2015.

The wind farm benefits from fixed price support until September 2014. After this period, the project will receive a government-backed floor price for electricity sold until May 2035.

The transaction is subject to regulatory approval, which is expected in the second quarter of this year.