Pursuant to the agreement, Arise has received €1.7 million and will further receive €5 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. SEK9 million in 2014 and SEK37 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 at €71 million (US$91 million).
Vestas will be supplying 14 Vestas V126 3.3 MW turbines for the project and a 10-year power purchase agreement (PPA) has been entered into with Axpo Nordic. Construction of the project has begun and commissioning is expected in November 2015.
Peter Nygren, CEO of Arise stated:
“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.”
Rory O’Connor, Managing Director BlackRock Renewable Power added:
“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.”