BIG Shopping Centers advances its strategy of Development of the energy sector and acquires another wind turbine project in Romania with an investment of about 135 million euros
Hay Galis, CEO of BIG Shopping Centers: This is another strategic step in implementing the global development policy of our energy armBIG Shopping Centers
, reports this morning on another significant deal for the group's energy arm. A subsidiary BIG Energia Holdings Kft
, in which the company holds 50% (subject to the completion of the merger process with Mega Or Holdings; as of this stage, the company holds 100% of the company's shares) has entered into an agreement to acquire 100% of a Romanian company which owns rights in a wind project in an advanced stage, for the establishment of a wind turbine farm on a land in the province of Tulca in Romania. The project is planned to include 20 turbines with a capacity of 6 megawatts each and is expected to produce circa 384 gigawatt hours per year. This is a gradual transaction, subject to milestones and subject to conditions precedent.
In the first phase, the subsidiary will pay 9 million euros, for the purchase of shares and development of the project until the construction permits are received, which will be paid according to the pace of development of the project until the receipt of the construction permits. The cost of developing the project is expected to amount to circa 135 million euros.
According to the company's estimates, the gross revenue from electricity sales is expected to amount to circa 21 million euros per year after balancing payments to the electrical grid (based on a sale price of 55 euros per megawatt hour net), throughout the life of the project which will last at least 25 years. The total EBITDA from the project is expected to be about 16 million euros per year. The project is in advanced stages of development and has received the approval of the Romanian Environment Authority and approval for its connection to the electrical grid for 92 MW. The final approval, which will include 120 MW, is expected to be obtained in the coming months.
, CEO of BIG Shopping Centers
, notes that this deal is in line with the company's strategy, which defined the energy sector as a growth engine and a lever for diversifying investment channels, in line with the company's sustainability values. Galis also notes that this deal joins the 102 MW wind project, URLEASCA, acquired by the company at the end of last year, which recently received approval to connect to the national electrical grid and is expected to receive a building permit in the first quarter of 2023.