Swedish developer Arise has sold the 277MW Kolvallen wind farm in Sweden to a fund managed by Foresight Group.
The total consideration from the divestment amounts to approximately €100m, of which €75m is fixed and paid on closing, and €25m is a variable consideration payable upon completion of the construction of the project.
The divestment, first reported in the subscriber-only newsletter reNEWS, is expected to have a positive impact on earnings of approximately €90m in total between 2022 and 2025, of which approximately €65m will be realised at closing.
The variable portion of the consideration is dependent upon how construction progresses in relation to programme and budget.
Arise will manage the construction and, once operational, manage the project on behalf of Foresight through construction and asset management agreements.
Arise shall invest approximately €17m in to the wind farm to acquire an approximately 9% equity stake.
Siemens Gamesa will be supplying 42 turbines (41 of the 6.6-170 model and one 6.6-155) and the wind farm is expected to be commissioned at the beginning of 2025.
Arise was advised by DNB Markets and Setterwalls Advokatbyrå AB in the transaction.
Arise chief executive Per-Erik Eriksson said: “We are very happy to have realised the company’s largest project to date under these market conditions.
“We have a longstanding relationship with both Foresight and Siemens Gamesa, not least since the sale of Skaftasen in 2019, and this partnership is strengthened further through the Kolvallen project.
“I am pleased that we have had the opportunity to invest in the project, which is the company’s best ever in terms of production capacity and further illustrates our flexibility as well as an ambition to contribute to the expansion of renewable power production from an owner’s perspective.
“Once operational, Kölvallen will contribute almost 1 TWh renewable power production annually.
“This successful project is founded on strong partnerships and team collaboration from start to finish, and we look forward to successfully delivering Kölvallen together with our partners.”