Arise agrees sale of its 12.8 MW Bohult wind farm to a fund managed by Allianz Global Investors

Arise AB has entered into a conditional agreement for the sale of the 12.8 MW operating Swedish wind farm Bohult to AREF2, a fund managed by Allianz Global Investors for a consideration of €19.1 million (US$21 million) on a cash and debt free basis. The transaction is based on an annual production of 42.4 GWh. An additional consideration may be payable to Arise subject to future production developments.

Completion of the sale is subject to certain final investigations among other merger control and a final technical inspection, which is expected to occur end of September or early October 2016. In addition to the sale, Arise will operate the Wind Farm on behalf of AllianzGI under a 5-year asset management contract.

Subject to completion of the sale as planned, the cash flow effect after repayment of project financing debt and cancelation of an interest rate swap is estimated to just over SEK90 million (US$10.4 million). This also includes the release of blocked accounts. The transaction is expected to have a marginal impact on Arise’s earnings in 2016

Daniel Johansson, CEO Arise AB, said:

“This constitutes our second transaction with Allianz GI, which is most satisfactory. We are proud to announce what we think is an attractive transaction for Arise despite relatively tough market conditions. We are now working with full force to achieve completion of the transaction during the fall.”