Foresight finalises acquisition of 231MW wind farm with EU partners

Ilaria Grasso Macola 20 April 2020 (Last Updated April 20th, 2020 16:48)

Foresight Group, alongside other four European institutions, has finalised the acquisition of the 231MW Skaftasen wind farm from Swedish renewable energy company Arise.

Foresight finalises acquisition of 231MW wind farm with EU partners
The farm will be operational from 2021. Credit: Andrew Shultz.

Foresight Group, alongside other four European institutions, has finalised the acquisition of the 231MW Skaftasen wind farm from Swedish renewable energy company Arise.

Foresight had achieved financial close for the $342m project in January, after acquiring it from Swedish renewable energy company Arise in December 2019.

Located in central Sweden, the project is set to be operational by 2021 and is expected to offset 425,000 tonnes of CO2 per annum.

Foresight said the wind farm will feature 35 Siemens Gamesa SG 5.8-155 turbines, which feature a flexible power rating and operate at 6.6MW.

Co-investors include BAE Systems Pension Funds Investment Management (BAPFIM), Arcano Partners, Polhem Infra and Kommunal Landspensjonskasse Gjensidig Forsikringsselskap (KLP).

 

Understanding the project

The Skaftasen wind farm represents Foresight’s first investment in the Nordics and is expected to expand the company’s portfolio to 603.5MW of installed capacity.

Arise, the former owner, received a fixed purchase price of €19.1m upon entry, expecting to earn SEK210m (€19m) between 2019 and 2021. The transaction contains a production-based additional purchase price of €4.5m.

 

Executives respond to the deal

Foresight Group partner Richard Thompson commented on the latest development, saying: “We are delighted to have been able to introduce such a strong syndicate of co-investors alongside our Foresight Energy Infrastructure Partners fund to support the development of this, our first greenfield onshore wind investment in Sweden.

“We are continuing to find strong demand amongst European institutional investors for the renewable energy infrastructure asset class, given both its resilience and strong sustainability characteristics, and expect to be able to announce further closes for FEIP, which has a target size of €500m, in due course.”

 

Companies overview and share price

Headquartered in London, the Foresight Group is an independent infrastructure and private equity investment manager, managing more than 290 renewable assets, with a total capacity of 2.2GW.

The equity manages €5.3bn in assets, out of which €4.5bn in the renewable energy infrastructure sector.

Founded in 2003, Arcano Partners is an independent financial advisory and asset management company. To acquire the wind farm, Arcano drew on funds from the Arcano Earth Fund, involving investments in sustainable infrastructure through co-investments in Europe and North America.

BAPFIM, a subsidiary company of BAE Systems, manages pension schemes and is responsible for £24bn in assets under management.

KLP is the Norwegian public sector’s pension company and manages the pensions of almost one million people. The company is owned by Norwegian municipalities, health companies and businesses.

Owned by Swedish AP Funds, Polhem is an infrastructure assets management company founded in 2019. Polhem has direct investments in Swedish infrastructures, both in the private and public sectors.

With a total 1300MW of assets under control, Arise is one of Sweden’s biggest onshore wind power companies. The company’s share price has gone up today by 2.02%, to SEK40.40.