A 200MW wind farm in central Texas reached financial close last week after BlackRock Real Assets acquired a 49 percent stake in the project from Alterra Power Corporation.
Alterra, a Vancouver-based power producer, also announced financing for the Flat Top wind project secured from a consortium of banks and a $221 million tax equity investment from subsidiaries of Berkshire Hathaway Energy and Citi. In addition, Alterra said it has expanded an existing loan agreement with AMP Capital Investors by $21 million to help pay its own investment in the project.
The project secured $287 million in loans from Citi, Santander and the Royal Bank of Canada, according to a statement. The agreement consists of a $217 million loan facility and letters of credit totalling $71 million. The same group of lenders partnered for a similar deal in 2015, when Alterra and Starwood Energy Group Global developed a 204MW wind project – also in Texas.
Flat Top is contracted to sell the majority of its power under a 13-year agreement with a subsidiary of Citi.
BlackRock’s investment comes a few weeks after closing its second Global Renewable Power fund on $1.65 billion. GRP II, the firm’s fourth renewable energy vehicle, is already 20 percent invested and aims to deploy capital in North America, Europe and selected OECD markets over a five-year investment period.