Gestamp offloads Punta Lima wind farm to Sovereign Bank for $88m

Spanish renewable energy developer Gestamp has offloaded its 23.4MW Punta Lima wind farm at Naguabo in Puerto Rico for $88m.

The transaction was executed by the company’s subsidiary Gestamp Wind while Sovereign Bank, a subsidiary of banking major Banco Santander was the purchaser of the facility.

The sale of the facility was facilitated by the renewable energy team at CohnReznick (CR) alongside Reznick Capital Markets Securities (RCMS); the companies provided financial, tax and auditing consulting, valuation and structuring services for the transaction.

Acknowledging the assistance provided by CR and RCMS, Gestamp Wind CFO Alejandro Burgaleta said, "Their expertise in renewable energy transactions and comprehensive financial and accounting services was critical throughout this complex financial transaction."

The wind farm was Gestamp’s first venture in Puerto Rico, generating 52GWh of electricity per annum to meet the energy requirements of 9,000 households in the region.

Puerto Rico Electric Power Authority (PREPA) had concluded a power purchase and operating agreement (PPOA) to procure 100% energy produced at the facility as well as the renewable energy credits.

CohnReznick partner and renewable energy practice national co-leader Tim Kemper highlight the support received by the government and the utility in concluding the sale transaction.

"With our fully integrated approach to service delivery, CohnReznick was ideally placed to help PREPA modify its energy portfolio by reducing its oil consumption through increasing renewable energy deployment," added Kemper.

The Punta Lima project comprises 13 wind turbines supplied by Vestas and has been in production since October 2012.