EDF Renewable Energy and UBS International Infrastructure Fund have signed a definitive agreement under which UBS will acquire a 50% equity interest in the developer's 161 MW Spinning Spur II wind farm project, subject to completion of construction and customary conditions precedent.
Earlier this year, EDF exercised an option to acquire the remaining 49% interest in Spinning Spur II from Cielo Wind Power LP, bringing EDF's ownership to 100%.
Spinning Spur II, located in Oldham County, Texas, commenced construction in June and is expected to enter commercial operation around July 2014. The wind farm will utilize 87 1.85-MW GE wind turbines, and EDF notes that the project is slated to advantage of the new Competitive Renewable Energy Zone transmission lines in Texas.
"The transaction model allowed EDF Renewable Energy to team up with a strong partner like UBS Infrastructure early in the project lifecycle," says the developer's Raphael Declercq. "EDF Renewable Energy will remain in charge of development, construction and tax-equity financing until commercial operation is achieved; we will then bring in our expertise in operations and maintenance through EDF Renewable Services to optimize both partners' long-term investment profitability."
Spinning Spur II will be UBS International Infrastructure Fund's sixth investment and its second renewables acquisition. Floyd Gent, head of Americas for UBS International Infrastructure Fund, comments, "Spinning Spur II, upon completion of its construction, is expected to generate stable, long-term returns for the fund, consistent with our investment objective."