German independent energy producer Pacifico Renewables Yield has agreed to acquire a wind farm in Germany from a subsidiary of New Energies Systems.
The parties agreed on an enterprise value of €35m.
The 15.6MW project is currently at an advanced stage of construction and is scheduled for completion in early 2021.
It is located close to Reudelsterz in Rhineland-Palatinate and comprises five Nordex N131 turbines.
Once fully operational, it is expected to produce approximately 37 gigawatt-hours of electricity a year.
The wind farm will benefit from a 20-year remuneration of €79.3 per megawatt-hours under the German Renewable Energy Law (EEG 2017).
The purchase raises Pacifico Renewables Yield’s portfolio to 96.6MW.
The company said that in connection with the deal its revolving credit facility provided by Triodos Bank will be increased to €16.3m, which will allow for a fully debt-financed acquisition.
Closing of the transaction is subject to certain conditions, including the commissioning of all turbines and successful completion of the trial period, and is expected to occur in early 2021.
Pacifico Renewables Yield co-chief executive Christoph Strasser said: “With the acquisition of this onshore wind park, we are not only adding an additional stable 20-year German feed-in tariff-based revenue stream to our portfolio.
“We are also demonstrating our ability to execute attractive growth opportunities beyond our strategic partner’s development pipeline.”
Pacifico Renewables Yield co-chief executive Martin Siddiqui said: “Applying this tailored structure to finance acquisitions is another proof of concept for our key priority to operate with minimal dry powder and for our agility.
“The additional financial flexibility provided by the increased RCF will also be of strategic importance going forward to execute our growth plans and continue demonstrating rigorous financial discipline.”