BlackRock Real Assets’ Global Renewable Power (GRP) platform has sold its controlling interest in two Iowa wind facilities to Greenbacker Renewable Energy Co.
The deal, which involves the 42.5 MW Elk and 37.5 MW Bethel (Hawkeye) projects, follows BlackRock’s sale of the Community Wind South project in Minnesota to Greenbacker earlier this year.
Acquired in 2015 by a fund managed by BlackRock’s GRP team, Elk and Hawkeye benefit from stable cash flows through a long-term off-take contract with Central Iowa Power Cooperative, an energy provider serving 300,000 residents and more than 13,000 commercial and industrial accounts in Iowa.
“Our second transaction with Greenbacker demonstrates our commitment to delivering value for our clients and to building strong, lasting, relationships with partners in our industry,” says David Giordano, global head of renewable power at BlackRock. “As one of the early movers in the renewables investment sector, BlackRock is well-positioned to source attractive projects that allow our clients to invest capital in the transition towards low-carbon energy. The growing demand for clean, renewable power, along with the need to replace aging power generation infrastructure in developed markets, presents significant opportunities for investors.”
“Greenbacker is thrilled to acquire the Elk and Hawkeye projects in Iowa. Combined with our earlier acquisition of the Community Wind South project in Minnesota, we are adding 110 MW of high-quality wind assets with a strong operational track record and long-dated investment grade off-take contracts that will provide attractive and stable cash flows to our investors for many years to come,” adds Charles Wheeler, CEO of Greenbacker. “We are pleased to have expanded our relationship with BlackRock and excited to have become a partner to the State of Iowa with this investment.”
Skadden, Arps, Slate, Meagher & Flom LLP is the legal advisor on this transaction for BlackRock. Stoel Rives LLP is the legal advisor to Greenbacker.