Project summary
- A wind farm development expected to comprise of between 15 and 32 turbines in Wales.
- The scheme could generate enough power for 81,000 homes per year (based on average annual consumption of 4,000kWh).
- The landowner was approached by the tenant seeking a 5-year option to lease the site.
- The landowner sought advisory services from Fisher German to ensure that appropriate consideration was given to all commercial and practical implications of a potentially long-term deal.
Solution
- An initial review of the Exclusivity Agreement and draft Heads of Terms was undertaken in 2020 to understand the key terms of the landowner/developer relationship.
- Due diligence was carried out on the developer to consider their credibility.
- Pros and cons were considered and recommendations made to our client over how to approach the negotiations to secure the best outcome.
- A financial case with comparable deal evidence was produced to support an uplift in the proposed commercial terms.
- Heads of Terms were negotiated, agreed and signed by the parties in late-2020 with the Option Agreement exchanged in mid-2021.
Benefits
- An uplift in commercial terms for both the Option Agreement and Lease was secured.
- Non-commercial clauses were tightened ensuring the landowner wouldn't be unduly inconvenienced by the proposed development.
- A potential future revenue stream was secured on unproductive agricultural land at a time when there is great uncertainty over future farming rents and income.
