Landmark Infrastructure (LMRK) to Acquire California Land Assets from Canadian Solar (CSIQ) Unit

October 13, 2016 8:03 AM EDT

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Landmark Infrastructure Partners LP (Nasdaq: LMRK) announced that it has entered into a definitive agreement pursuant to which the Partnership will acquire approximately 4,000 acres of land in California underneath utility-scale solar photovoltaic (“PV”) projects developed by Recurrent Energy, a subsidiary of Canadian Solar Inc. (Nasdaq: CSIQ), one of the world’s largest solar power companies, for a total purchase price of approximately $73 million. The acquisition, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2016. The transaction is expected to be immediately accretive to the Partnership’s distributable cash flow, and the Partnership’s management expects to recommend that the Board increase the Partnership’s third quarter 2016 cash distribution, which will be paid in November 2016.

Highlights of the transaction:

  • The land acquired by the Partnership consists of six renewable power generation tenant sites within four utility-scale solar PV projects developed by Recurrent Energy; and
  • The portfolio features (i) an average remaining lease term of approximately 34 years (including renewal options); and (ii) rental income derived from utility-scale solar PV projects holding long-term power purchase agreements (“PPAs”) with tenures of 15 to 20 years from high-quality utility off-takers including Pacific Gas & Electric (“PG&E”) and Southern California Edison (“SCE”).

“We are very pleased to announce our first direct third-party portfolio acquisition which further demonstrates the Partnership’s commitment to the renewable power generation industry,” said Tim Brazy, Chief Executive Officer of the Partnership’s general partner. “The assets acquired from Recurrent Energy, one of the largest and most established developers in the industry, are extremely attractive. Backed by long-term power purchase agreements with high-quality off-takers, including PG&E and SCE, the portfolio is expected to generate growing and secure cash flows for the Partnership.”

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