Arise announces the sale of its 46.2 MW Brotorp wind farm to a fund managed by BlackRock
Arise AB (publ) (“Arise”), has entered into an agreement with a fund managed by BlackRock (“BlackRock”), the world’s largest asset manager, for the sale of the construction-ready 46.2 MW Brotorp wind farm (the “Project”). Pursuant to the agreement, Arise has received 1.7 MEUR and will further receive 5.0 MEUR 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 MSEK in 2014 and 37 MSEK 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 MEUR. 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.
Halmstad 12 November, 2014
ARISE AB (publ)
For further information, please contact
Peter Nygren, CEO Arise AB, +46 706 300 680
Linus Hägg, Head of Corporate Finance, +46 702 448 916
The information contained herein constitutes information which Arise AB is legally required to publish under the Swedish Securities Market Act (2007:528) and/or the Swedish Financial Instruments Trading Act (1991:980). The information was released for publication at 07.55 a.m. on 12 November 2014.
Arise is one of Sweden's leading onshore wind power companies. The company´s business concept is to develop, build and manage wind farms for its own and investors´ account with the aim of selling electricity produced by onshore wind turbines. Arise is listed on NASDAQ OMX Stockholm.
Arise AB (publ), P.O. Box 808, SE-301 18 Halmstad, Sweden, telephone 46 (0)35 20 20 900, corporate id .no. 556274-6726