Renewable Energy Generation Ltd Sale of 12 MW Goonhilly Downs Wind Farm (4654N)

TIDMWIND

RNS Number : 4654N

Renewable Energy Generation Ltd

09 September 2013

Renewable Energy Generation Ltd

Sale of 12 MW Goonhilly Downs Wind Farm

Renewable Energy Generation Limited ("REG") (AIM: WIND), the UK renewable energy group, announces the sale of its 12MW operational wind farm at Goonhilly Downs in Cornwall to a fund managed by BlackRock ("BlackRock"), for a total consideration of GBP25.1m. Under the agreement, BlackRock will assume project debt of GBP14.5m, REG receiving net cash proceeds of GBP10.6m.

Based on unaudited management information, the Goonhilly Downs Wind Farm contributed GBP1.1m of profits before tax to the REG Group for the 12 months ended 30 June 2013.

Under the terms of its existing Asset Management Agreement with BlackRock, REG will continue to manage operations at the wind farm.

REG currently has 38MW of projects with planning consents as well as 140MW of projects awaiting determination. The proceeds of the sale, together with REG's existing funds, will be employed in moving both existing and new consents to construction as quickly as possible, accelerating the growth of the Company and maximising returns to shareholders.

Andrew Whalley, Chief Executive Officer commented;

"We are delighted with the sale of Goonhilly to BlackRock. This was the first wind project bought by REG back in 2005 and with its successful repowering we have created significant value for shareholders. REG will continue to manage the project on behalf of BlackRock including oversight of the important Goonhilly Community Fund which has done so much in supporting local initiatives".

Enquiries:

 
 Renewable Energy Generation Limited 
  Andrew Whalley, Chief Executive Officer 
  David Crockford, Finance Director          +44 (0)1483 901 
  Ian Lawrence, Communications Manager        790 
 Smith & Williamson Corporate Finance 
  Limited 
  (Nominated Adviser)                        +44 (0)117 376 
  Martyn Fraser                               2213 
 Cenkos (Corporate Broker)                   +44 (0)20 7397 
  Bobbie Hilliam/Max Hartley                  8900 
 City Profile                                +44 (0)20 7448 
  Simon Courtenay                             3244

Notes to editors

Renewable Energy Generation Ltd (REG) is a UK renewable energy group. Its main business is the development, construction and operation of wind farms and generating power from refined used cooking oil.

REG Windpower: based in Truro, Bath and Guildford, UK, it currently operates 14 wind projects in Cambridgeshire, Cornwall, County Durham, Yorkshire, Lancashire, Cumbria and Gwynedd, with a total capacity of 67.15MW and has a development pipeline of over 1,000MW.

REG Bio-Power UK Ltd: based in Nottingham, UK: it operates electricity generation plant powered by fuel recovered from used cooking oil.

Headquartered in Jersey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM: WIND).

www.renewableenergygeneration.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

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