Arise AB, has entered into an agreement with a fund managed by BlackRock, the world’s largest asset manager, for the sale of the construction-ready 46.2 MW Brotorp wind farm. Pursuant to the agreement, Arise has received 1.7 Million Euros ($2.11 million) and will further receive 5.0 million Euros ($6.22 million) in additional consideration provided commissioning of the Project according to plan. The final consideration to be paid by BlackRock to Arise pursuant to the agreement may only be adjusted (upwards or downwards) based on the outcome of the construction of the Project.
Arise will manage the construction of the Project, and once operational, operate the Project on behalf of BlackRock through a construction and asset management agreement.
Arise expects that the sale will have a positive impact on earnings of approx. 9 million SEK ($1.2 million) in 2014 and 37 million SEK ($4.98 million) in 2015. Arise will also receive asset management revenues under a 5-year contract after the Project has been commissioned.
Total project costs are estimated to approx. 71 million Euros( $88.4 million). BlackRock will provide equity to the Project and a project finance facility has successfully been secured from SEB. Vestas will be supplying 14 Vestas V126 3.3 MW turbines for the Project and a 10-year Power Purchase Agreement has been entered into with Axpo Nordic. Construction of the Project has begun and commissioning is expected in November 2015.
“We are delighted to have partnered with BlackRock in this project. This is a transaction fully in line with our strategy to generate cash flow not only from our own wind farms but also from project development and construction and assets management services. We take pride in the fact that BlackRock also has chosen us to manage the construction and the future operation of the project. This demonstrates the value of our project portfolio as well as our construction and asset management platform. We look forward to a successful long term relationship with BlackRock”, says Peter Nygren, CEO of Arise.
“Our partnership with Arise creates an exciting investment opportunity for BlackRock’s clients. We look forward to working together with such a high quality developer in the Swedish onshore wind sector”, says Rory O’Connor, Managing Director BlackRock Renewable Power.
ST Staff Writers
This post was prepared by Solar Thermal Magazine staff.