Renewable Energy Generation Ltd announces sale of 12 MW Goonhilly Downs Wind Farm
Tuesday, Sep 10, 2013
Renewable Energy Generation Limited ("REG") (AIM: WIND), the UK renewable energy group, announces the sale of its 12MW operational wind farm at Goonhilly Downs in Cornwall to a fund managed by BlackRock ("BlackRock"), for a total consideration of £25.1m. Under the agreement, BlackRock will assume project debt of £14.5m, REG receiving net cash proceeds of £10.6m.
Based on unaudited management information, the Goonhilly Downs Wind Farm contributed £1.1m of profits before tax to the REG Group for the 12 months ended 30 June 2013.
Under the terms of its existing Asset Management Agreement with BlackRock, REG will continue to manage operations at the wind farm.
REG currently has 38MW of projects with planning consents as well as 140MW of projects awaiting determination. The proceeds of the sale, together with REG's existing funds, will be employed in moving both existing and new consents to construction as quickly as possible, accelerating the growth of the Company and maximising returns to shareholders.
Andrew Whalley, Chief Executive Officer commented;
"We are delighted with the sale of Goonhilly to BlackRock. This was the first wind project bought by REG back in 2005 and with its successful repowering we have created significant value for shareholders. REG will continue to manage the project on behalf of BlackRock including oversight of the important Goonhilly Community Fund which has done so much in supporting local initiatives".
Source: Renewable Energy Generation Limited