Siemens Gamesa has put up for sale its promotion activity of wind farms, when checking the market’s appetite for these types of facilities under development. It is basically land under construction with good locations and access to the network, for which the manufacturing company of wind turbines It can get up to 300 million, according to sources familiar with the operation.
This activity is “residual”, although recurrent, for the company, whose main business is the manufacture of turbines for third-party wind farms. It consists of searching land ‘prime’ for the development of these facilities and their construction, to be sold at some point to a company electric to exploit them once they are finished. It operates in Spain and some countries in Southern Europe.
But now, the company that presides Miguel Angel Lopez considers that there is an opportunity to sell the activity en bloc instead of placing the parks one by one when they are developed. Also, you would get an extraordinary profit after the profit warning that gave in July.
Hence I have hired Bank of America Merrill Lynch to check the interest in buying this unit, which is known as teaser in investment banking, according to sources familiar with the operation.
These sources assure that this initial interest is high, and there are even some giants in the sector, such as Iberdrola, EDP and Naturgy, or large international funds (Macquarie) interested in making offers for parks under development. Therefore, it is estimated that the amount of the operation could reach 300 million euros, they add.
Renewable fever and land quality
This strong interest is explained because “everyone wants to make renewables in Spain” thanks to the incentives for this activity that will come from the European funds, in addition to the guaranteed profitability that is already offered in our country to these facilities.
In addition, what is being sold here is land with good locations chosen by one of the greatest specialists in the business, which can be operated as soon as construction is completed. This is in contrast to ongoing sales of renewable companies, who are encountering great difficulties (such as cases of Capital Energy u Opdenergy) to find buyers or partners at the prices they are pursuing, due to their strong indebtedness, to your needs capital and the uncertainties about its ability to develop the gigawatts that have been awarded in the different government auctions.
Siemens’ land is very heterogeneous: some already have the permissions necessary and others not. What they do have is the guarantee of network access to be able to dump the energy once developed.