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Renewable Energy Gen (WIND)

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Thursday 19 February, 2015

Renewable Energy Gen

Sale of 10MW Denzell Downs Wind Farm

RNS Number : 3621F
Renewable Energy Generation Ltd
19 February 2015
 

19 February 2014

 

Renewable Energy Generation Ltd

 

Sale of 10MW wind farm to BlackRock

 

Renewable Energy Generation Limited ("REG") (AIM: WIND), announces the sale of its 10MW Denzell Downs wind farm project to BlackRock Renewable Income UK, a fund managed by BlackRock ("BlackRock") for a total enterprise value of £24.4m.

 

Under the agreement REG will oversee construction of the project through a Construction Management Agreement and operate the completed wind farm on behalf of BlackRock via an Asset Management Agreement.

 

REG will receive upfront cash consideration of £10.5m, with a further £3.9m payable following commissioning of the scheme, anticipated to be in early 2016 and will recognise an initial £11m of profit on the sale.  The proceeds of the sale will be reinvested in REG's pipeline of consented renewable assets.  Construction funding will be provided by BlackRock.

 

REG's unrestricted cash resources now total around £22m, with further deferred consideration from recent asset sales of £5.9m recognised as receivable in the accounts of the companyThe Company's next tranche of projects Rodbaston (4MW), French Farm (4MW), Brackagh Quarry (6MW) and Barlborough (0.8MW) are currently undergoing project finance and will move to construction later this year. Additionally two further Bio-Power projects will be constructed during REG's next financial year.

 

Andrew Whalley, Chief Executive Officer, said:

 

"We are pleased to further strengthen our relationship with BlackRock through the sale of the Denzell Downs wind farm. The transaction provides REG with significant additional capital, with the proceeds to be invested in our portfolio of consented sites."

"This transaction supports our aim of building long term operational cash flows so that we are in a position both to return value to our shareholders through increased dividends whilst maintaining investment in the business."

 

Rory O'Connor, Managing Director at BlackRock said:

 

"We are very pleased to continue BlackRock's excellent partnership with REG and to make this long-term all-equity investment in the Denzell Downs project as part of BlackRock's significant investment programme in the UK renewables sector."  

 

Enquiries:

Renewable Energy Generation Limited

Andrew Whalley, Chief Executive Officer

David Crockford, Finance Director

Ian Lawrence, Communications Manager

+44 (0)1483 901 796

Smith & Williamson Corporate Finance Limited

(Nominated Adviser)

Martyn Fraser

+44 (0)117 376 2213

Cenkos (Corporate Broker)

Bobbie Hilliam

+44 (0)20 7397 8900

Broker Profile

Simon Courtenay

+44 (0)20 7448 3244

 

Notes to editors

Renewable Energy Generation Ltd (REG) is an AIM listed renewable energy group. Its main business is the development, construction and operation of wind farms and generating power from refined used cooking oil.

REG Windpower: based in Truro, Bath and Guildford, UK, it currently operates 11 wind projects in Cambridgeshire, Cornwall, County Durham, Yorkshire, Lancashire, Cumbria and Gwynedd, with a total capacity of 34.7MW as well as 3 projects on behalf of its partner BlackRock totalling 28MW. REG has around 200MW of projects in the planning system awaiting consent.  

REG Bio-Power UK Ltd: based in Nottingham, UK: it operates 26MW of electricity generation plant powered by fuel recovered from used cooking oil.

Headquartered in Jersey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM: WIND).


This information is provided by RNS
The company news service from the London Stock Exchange
 
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