Arise sells Svartnäs wind farm to a fund managed by BlackRock

Arise has exercised its option right to acquire the 115 MW Svartnäs wind farm from Bergvik Skog AB. Subsequently, Arise has entered into an agreement with a fund managed by BlackRock, the world’s largest asset manager, for the sale of the project.

Arise has performed final development, design and procurement of the project, including sourcing an investor. Arise expects that the sale will have a positive impact on earnings of up to SEK97 million (US$11.7 million) over the years 2017 – 2019, including some profit taking relating to existing certificate hedges. The final outcome in terms of earnings and cash flow is dependent on how construction of the Project proceeds versus plan and budget.

Arise will manage the construction and once operational, manage the project on behalf of BlackRock through a construction and asset management agreement.

Total project costs are estimated to approx. €130 million (US$149 million) which will be fully funded by BlackRock. Vestas will be supplying 32 Vestas V136, 3.6 MW turbines. Construction of the project will begin in August and commissioning is expected early 2019.

Daniel Johansson, CEO of Arise, said:

“We are delighted to partner with BlackRock and realise the Svartnäs project. This is a transaction fully in line with our strategy to create value from development, construction and asset management services. We take pride in the fact that BlackRock once again has chosen to work with us. We look forward to exploit more opportunities with BlackRock in the future and are very happy to construct and manage assets on their behalf in Sweden and Norway”