A fully owned subsidiary within the Arise AB group has entered into an agreement with Fortum Generation AB, for the sale of the construction-ready 75 MW Solberg wind farm in Västernorrland County, northern Sweden.
In addition to the sale, Arise will deliver construction management services to the project. Construction is subject to a final investment decision by Fortum.
Arise originally acquired the project from the developer Ownpower Projects AB (OPP) in 2011. The project has since then been developed in partnership with OPP under a profit sharing arrangement.
Proceeds from the sale will be divided between Arise and OPP accordingly. Arise estimates that its share of the profits will be up to SEK30 million (US$3.5 million), part of which depends on the final timing and outcome of the construction of the project.
Additionaly, Arise will be reimbursed for accrued capital expenditure at closing, amounting to approx. SEK33 (US$3.8 million). EY has acted as financial adviser to Arise.
Linus Hägg, CFO of Arise, stated:
“We are delighted to have partnered with Fortum in this project and look forward to working together with one of the leading energy companies in the region in delivering this project. We are also pleased that the transaction further solidifies Arise leading position in the Nordic wind power market. Our portfolio and construction & asset management platform continue to offer an attractive proposition to investors in Nordic renewable energy.”
Mikko Iso-Tryykäri Business Development Manager at Fortum, commented:
“We are pleased to work with Arise on the development of the Solberg project. The site is construction-ready with very good conditions for wind power production. It is a good fit with our recently announced new strategy that targets significant growth in wind power."