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Babcock and Brown Wind Partners To Acquire Eifel wind farm in Germany
Sydney, Dec 30, 2005 (ABN Newswire) - Babcock & Brown Wind Partners (ASX: BBW) announces that it has entered in to a contract to buy a 100% economic interest in the Eifel wind farm in Germany. The Eifel wind farm consists of four sites located in the South-Western region of the Rhineland-Palatinate in the Federal Republic of Germany.
The Eifel wind farm (Eifel) has 18 Nordex turbines in operation or under construction and the opportunity for another four turbines. There are currently 15 turbines, with a combined capacity of 22.5MW, in operation. A further three turbines, with a combined capacity of 4.5 MW are currently under construction and expected to commence operation in early 2006. Further there are a potential four additional Enercon turbines which will be developed subject to satisfactory conditions precedent relating to construction and operation being met. These four additional turbines would have a combined capacity of 8 MW taking the total expected capacity for the farm to 35 MW, with an estimated long term energy production of 69.7GWh per year.
Mr Peter O'Connell, Chief Executive Officer of BBW said "we are very happy to make this acquisition which is in line with our stated investment strategy and provides BBW with an asset in an established wind farm precinct of Germany, the worlds largest wind energy market" . "Most importantly we expect the returns from this acquisition will be accretive to investors" he said. The electricity produced will be sold on a 20 year "take and pay" basis to the local electricity utility in accordance with the relevant fixed tariff provision of Germany's renewable energy legislation.
Operating and Maintenance contracts in place with Nordex (for those turbines already in operation or under construction) and Enercon (for the four proposed turbines) will ensure production performance and control of costs.
BBW is to acquire 100% of the capital of Babcock & Brown Eifel UK Limited which is the sole limited partner of the German Limited Partnership: NPV Zweite Windpark GmbH & Co KG. The vendor is Babcock & Brown Investment Holdings Pty Limited, a subsidiary of Babcock & Brown. The transaction is expected to be completed in late January 2006 and will be funded from proceeds raised in the recent IPO of BBW.
Based on an independent valuation, BBW will pay Euro 9.25 million (approximately A$14.73 million), excluding fees, for the wind farm which has a total enterprise value of Euro 42.15 million (approximately A$67.13 million). The balance is made up of limited recourse finance of Euro 32.40 million (net) and Euro 0.5 million working capital. Mr Peter Hofbauer, Global Head of Infrastructure for Babcock & Brown and Chairman of BBW said "this acquisition demonstrates the benefits of the relationship BBW has with Babcock & Brown, a long established participant in the wind energy market with an extensive global network, and exemplifies the pipeline available for BBW's future growth."
The acquisition of Eifel takes the total installed capacity of BBW to 706.6 MW with an estimated long term mean energy production of approximately 2,250.7 GWh per annum.
About BABCOCK AND BROWN WIND PARTNERS
Babcock and Brown Wind Partners (ASX: BBW) is a specialist investment fund focused on the wind generation sector.
BBW listed on the Australian Stock Exchange on 28 October 2005 and has a market capitalisation of approximately A$850 million.It is a stapled entity comprising Babcock and Brown Wind Partners Limited (ABN 39 105 051 616) Babcock and Brown Wind Partners Trust (ARSN 116 244 118) and Babcock and Brown Wind Partners (Bermuda) Limited (ARBN 116 360 715).
BBW's portfolio (including the Eifel wind farm) comprises an interest in 16 wind farms on three continents that have a total installed capacity of over 700 MW and are diversified by geography, currency, equipment supplier, customer and regulatory regime.
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