Cube clinches 25% of renewable developer

Following the latest acquisition of two wind farms in France, the funds that fuelled a partnership between Cube Infrastructure and Boralex Europe have now been exhausted. A cash-for-equity deal leaves Cube with a 25% holding in Boralex Europe.

Boralex Europe, a subsidiary of Canadian renewable developer Boralex, announced recently the acquisition of two wind farm projects in France for €34 million.

The projects – a 34.5-megawatt operational wind farm bought from AES Corporation and three authorised wind projects with an installed capacity of 56-megawatts, purchased from InnoVent SAS – were bought with the last fruits of an equity injection made by French fund manager Cube Infrastructure in 2009.

“With this acquisition, Boralex exceeds 500 megawatts in operation, with an installed capacity of nearly 200 megawatts in France. The acquisition also allowed Cube Infrastructure Fund to complete its initial financial commitment well ahead of the December 2012 deadline,” Boralex president and chief executive Patrick Lemaire explained in a statement.

Boralex added that Cube’s stake in Boralex Europe now stands at circa 25 percent.

In late 2009, Cube and Boralex announced they had signed an agreement that would see the French fund manager inject €33 million into Boralex Europe in exchange for a 30 percent stake in the firm. 

Judging from chief executive Lemaire’s comments, that commitment appears to have now been exhausted, although Cube’s final stake in Boralex is lower than the originally announced 30 percent. Cube and Boralex could not be reached for comment on this.

Earlier this year, Cube was said to be in the race to buy a minority holding in Veolia Transdev, one of the world’s largest public transport operators with about €8 billion in consolidated revenues.