Portuguese utility firm EDP is to sell a portfolio of seven onshore wind farms in a €426 million ($502 million) deal.

Renewables developer Finerge Group will acquire the portfolio of wind farms, with a total capacity of 242MW (megawatts), located in the Ávila and Catalonia regions of Spain. The deal was announced on Monday through EDP’s renewable energy business, EDP Renewables (EDPR).

EDPR agreed to sell its equity shareholding and outstanding shareholder loans in the wind farms to Finerge, valuing the portfolio at approximately €507 million ($598 million) based on the transaction price and the value of the net outstanding debt.

Transaction is expected to close in Q4, subject to regulatory approval.

The sale is part of EDP’s asset rotation strategy, which allows the company to monetize assets prior to their lifecycle end and “step up value creation.” The capital generation from the asset rotation strategy is then reinvested in new growth projects.

Through the deal with Finerge, EDPR has now completed the divestment of 40% of the €4 ($4.7) billion planned over the 2019-2022 period.

“This agreement is a major milestone for us. Not only does it show that we are able to generate value through project development and management, it also demonstrates that the market recognises the quality of our assets,” said Rui Teixeira, interim chief executive of EDPR.