Project summary
- Consultancy advice on a range of energy schemes deployed between 2015-2018 including a 500kW wind turbine, a 5MW solar park and a 6MW gas gen-set plant
- To negotiate terms with three developers for option agreements/leases, to ensure the landlord was protected and maximising the available financial return from their land, given the technology being deployed
Solution
- Review the likely financial performance of each project to understand the developer's return and site value
- Evaluate short, medium and long term risk to the client
- Minimise the loss of farmland without compromising project viability
- Agree base rent and profit share from the tenants to be guaranteed for the next 25-30 years
Benefits
- Diversification of revenue streams from the farm
- A one-off capital payment on entering the lease and guaranteed minimum rent on a solar park for 25-30 years, with a rental link to gross revenues
- Guaranteed minimum rent for the 500kW turbine for 26 years, with a percentage link to gross revenues, offering an annual rental uplift
- Further income secured via a lease entry fee for a gas generator plant and rental income for 25 years. The agreement includes the replacement of a dilapidated shed, erected at the tenant's cost but for the clients' sole use at the end of the term. The tenant provided a decommissioning bond on lease entry to cover future costs of reinstatement
