Krogerus advised Prime Capital AG on its third investment in Finnish onshore wind through acquisition of project Posio. The acquisition was financed on full equity basis but Prime Capital AG will later arrange debt financing for the project.
The project consists of seven Vestas V126 turbines with a capacity of 3.3 MW, located in the municipalities of Posio and Kuusamo, and it has been operating for approximately 24 months under the Finnish feed-in tariff scheme, thus offering long-term predictability of cash flows.
The location benefits from an attractive average wind speed of 7.8 m/s and will generate approximately 80 GWh of renewable electricity per annum, equivalent to the annual consumption of some 10,000 Finnish households. Following the acquisition, the wind turbines' capacity will be increased to 3.45 MW through separate power uprate and OX2 will take over the operational management of the project.
Prime Capital is an independent asset management firm and financial services provider focusing on institutional clients, with approximately EUR 10.4 billion in assets under management.
The Krogerus team was led by partner Ville Hailikari. He was assisted by senior associate Milla Niemi and associate Vilma Jeskanen. Senior associate Sanna Lindqvist advised on the tax aspects of the transaction.