It will sell CPPIB 49% of its wholly-owned holding company EIH Sarl, through which it owns a 50% stake in the EMF consortium.
Following the completion of the transaction in Q4 2020, the new EMF structure would see French energy giant EDF Renewables hold 50%, Enbridge with 25.5%, and CPPIB with 24.5%.
The consortium is developing three offshore wind farms in French waters: the 480MW Saint-Nazaire ,Ìý497MW Fécamp and 448MW Courseulles-sur-Mer (Calvados) projects.
Courseulles-sur-Mer also includes German developer Wpd as an owner.
CPPIB will pay Enbridge 49% of all development capital it has spent to date to acquire its 24.5% stake in the consortium. It will also contribute its pro-rata 49% share to all ongoing development and construction costs.
The Canadian investment fund added that this means it will pay €80 million (US$86 million, C$120 million) for its stake in the company, plus an additional €120 million as Saint-Nazaire progresses through construction. It could also invest a further €150 million in the other two wind farms, CPPIB added.
Enbridge explained that it expects the deal to help boost its equity returns from the projects.
Meanwhile, managing director of CPPIB's power and renewables unit, Bruce Hogg added: "This investment will provide additional diversification to our existing portfolio of assets and deepen our access to future high-quality offshore wind development projects in Europe and Asia."
The consortium expects to reach a final investment decision on Fécamp and Courseulles-sur-Mer later this year.
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