Landmark Infrastructure Partners LP Announces $73 Million Utility-Scale Solar Land Acquisition from Canadian Solar Subsidiary...
October 13 2016 - 8:00AM
Landmark Infrastructure Partners LP (the “Partnership”)
(NASDAQ:LMRK) today announced that it has entered into a definitive
agreement pursuant to which the Partnership will acquire
approximately 4,000 acres of land in California underneath
utility-scale solar photovoltaic (“PV”) projects developed by
Recurrent Energy, a subsidiary of Canadian Solar Inc. (“Canadian
Solar”) (NASDAQ:CSIQ), one of the world’s largest solar power
companies, for a total purchase price of approximately $73
million. The acquisition, which is subject to customary
closing conditions, is expected to close in the fourth quarter of
2016. The transaction is expected to be immediately accretive
to the Partnership’s distributable cash flow, and the Partnership’s
management expects to recommend that the Board increase the
Partnership’s third quarter 2016 cash distribution, which will be
paid in November 2016.
Highlights of the transaction:
- The land acquired by the Partnership consists of six renewable
power generation tenant sites within four utility-scale solar PV
projects developed by Recurrent Energy; and
- The portfolio features (i) an average remaining lease term of
approximately 34 years (including renewal options); and (ii) rental
income derived from utility-scale solar PV projects holding
long-term power purchase agreements (“PPAs”) with tenures of 15 to
20 years from high-quality utility off-takers including Pacific Gas
& Electric (“PG&E”) and Southern California Edison
(“SCE”).
“We are very pleased to announce our first
direct third-party portfolio acquisition which further demonstrates
the Partnership’s commitment to the renewable power generation
industry,” said Tim Brazy, Chief Executive Officer of the
Partnership’s general partner. “The assets acquired from
Recurrent Energy, one of the largest and most established
developers in the industry, are extremely attractive. Backed
by long-term power purchase agreements with high-quality
off-takers, including PG&E and SCE, the portfolio is expected
to generate growing and secure cash flows for the Partnership.”
About Landmark Infrastructure Partners
LPThe Partnership is a growth-oriented master limited
partnership formed to acquire, own and manage a portfolio of real
property interests that the Partnership leases to companies in the
wireless communication, outdoor advertising and renewable power
generation industries. Headquartered in El Segundo,
California, the Partnership owns and manages a diversified
portfolio of real property interests, which includes long-term and
perpetual easements, tenant lease assignments and, to a lesser
extent, fee simple properties, primarily located in the United
States. As of August 30, 2016, the Partnership’s portfolio
consisted of 1,965 tenant sites.
Cautionary Note Regarding Forward
Looking Statements
Disclosures in this press release contain
certain forward-looking statements within the meaning of the
federal securities laws. Statements that do not relate
strictly to historical or current facts are forward-looking.
These statements contain words such as “possible,” “if,” “will,”
“expect” and “assuming” and involve risks and uncertainties
including, among others that our business plans may change as
circumstances warrant. Accordingly, readers should not place
undue reliance on forward-looking statements as a prediction of
actual results. Examples of forward-looking statements in
this press release include the expected closing date of the
acquisition, the accretive nature of the transaction, expected cash
flows and the potential increase in the Partnership’s third quarter
2016 cash distribution. For more information concerning factors
that could cause actual results to differ materially from those
conveyed in the forward-looking statements, please refer to the
“Risk Factors” section of our Annual Report on Form 10-K for the
year ended December 31, 2015 filed with the SEC. Any
forward-looking statements in this press release are made as of the
date of this press release and the Partnership undertakes no
obligation to update or revise such forward-looking statements to
reflect events or circumstances that occur, or of which the
Partnership becomes aware, after the date hereof, unless required
by law.
CONTACT:
Marcelo Choi
Vice President, Investor Relations
(310) 598-3173
ir@landmarkmlp.com
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