London-based The Renewables Infrastructure Group (TRIG) has agreed to acquire a 50% the 213MW Swedish wind farm Jadraas from developer Arise.
The deal is expected to be worth Skr200m and is due to close in before the end of this quarter.
Arise chief executive Daniel Johansson said: “We are very pleased to sell Jadraas to TRIG and look forward to a close cooperation.
“Jadraas was our first large-scale project and it marked the beginning of our journey to become the company we are today.”
The transaction follows a strategic review of Arise’s long-term ownership in Jadraas.
The review concluded that more value could be created for the operator by selling the 50% stake now, as opposed to retaining the asset over its entire life.
Johansson said: “Even though it has not been the success we hoped for financially, we bring with us all the knowledge and experiences gained into our future business. We are now very well positioned with a strong team, a strong development pipeline and a strong balance sheet.”
Richard Crawford, infrastructure director at TRIG’s adviser InfraRed Capital Partners said: “Jadraas is our second acquisition in the Nordic region and represents a key part of our strategy to increase our geographical diversification.
“With strong power price hedging in place and attractive returns, this acquisition complements our existing portfolio very well, whilst increasing our exposure to one of Europe’s most attractive regions for renewable energy development.”
The sale is expected to result in a pre-tax loss of SEK245m due in part to swap break costs.
The book carrying value of Arise’s remaining portfolio of operational wind farms is SEK1.2bn.
The expected net proceeds of SEK200m from the transaction with TRIG, coupled
with SEK170m of contracted cash flow from ongoing construction projects, will result in a significant cash position, according to Arise, with the remaining operating assets representing a net asset value of more than SEK600m.
Arise said it is well positioned to realise its project portfolio of 1GW.
The next project sale, Skaftasen, equating to 200MW of capacity, is expected to occur in the second half of this year.
Additional projects are maturing and are expected to be divested over the coming years, said Arise.
Arise’s asset management business comprises 1.1GW of capacity, with recurring revenue streams, strong growth and profitability.