Krzecin and Kuslin wind farms acquired by Orlen affiliate. Greater capacity, higher net revenues and IRR. New lines of credit and capital recycling.
Octopus Renewables Infrastructure Trust (ORIT) has finalized the sale of the Krzecin and Kuslin onshore wind farms in Poland to an affiliate of Orlen. The combined capacity of these two facilities is 59 MW, providing enough green energy for more than 100.000 homes and avoiding the equivalent of 150.000 tons of carbon dioxide emissions annually. The conclusion of sale was conditional on obtaining competitive approvals, which are already valid, ORIT reported. The net value of the transaction for ORIT will be approximately £92 million, which is at the upper end of the company's expectations when signing the sale in October 2023.
This sale is part of the company's strategy to release capital through alienation of a small number of assets. Chair of the Octopus Renewables Infrastructure Trust, Phil Austin, commented: 'We are pleased to deliver the first outcome of our capital recycling program with the sales successes of Polish wind farms.' 'It is transaction This is an excellent result for the Company, providing a strong increase to the Company's NAV.'
Sale of wind farms: profitable transaction in the construction phase
The sale of wind farms is a complex transaction that requires careful negotiation to ensure the best results. The commercialization of these assets combined capacity high level can generate significant net revenues for companies in the renewable energy sector. Furthermore, the sale of wind farms can result in an Internal Rate of Return (TIR) attractive to investors. To make this sale, it is often necessary to obtain credit lines specific to the wind sector. During the construction phase, capital recycling and active resource management are essential to ensure the success of the transaction. In this context, the sale of wind farms represents a unique opportunity for companies in the sector.
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Benefits of selling wind farms: maximizing net revenue
The sale of wind farms can generate significant benefits for companies in the renewable energy sector. In addition to providing a profitable transaction, the sale of wind farms can result in a maximization of net revenues. This is due to the combined capacity of these assets that allows for an IRR that is advantageous to investors. However, to complete this sale, it is essential to have specific credit lines for the wind sector. During the construction phase, capital recycling and active resource management play a crucial role in ensuring the success of the transaction. Therefore, the sale of wind farms represents a unique opportunity for companies in the sector to maximize their net revenues.
Challenges of selling wind farms: effective negotiation and divestiture strategies
Selling wind farms presents challenges that require effective negotiation and divestiture strategies. It is essential to overcome these challenges to ensure the success of the transaction. Furthermore, the commercialization of these high combined capacity assets can result in significant net revenues for companies in the renewable energy sector. IRR is another factor that must be considered when selling wind farms, as it can influence the final results of the transaction. Therefore, it is essential to obtain specific credit lines for the wind sector to make this sale viable. During the construction phase, capital recycling and active resource management play a crucial role in ensuring the success of the transaction. In short, the sale of wind farms is a unique opportunity for companies in the sector to overcome challenges and achieve significant results.
Source: © Re News.Biz