BlackRock Real Assets Sells Operating Portfolio of Canadian Solar Plants to Ullico Inc.

01 Feb 2019

BlackRock Real Assets (“BlackRock”) has reached an agreement with Ullico Inc. (“Ullico”) on the sale of a portfolio of four operating solar projects (the “Portfolio”) in Ontario, Canada. This marks the third successful realization for BlackRock’s Renewable Power platform and offers Ullico an attractive, long-term contracted solar portfolio in the Canadian renewable power market.

BlackRock acquired, financed and oversaw construction of the Portfolio over an 18 month period. The solar farms provide attractive, long-term stable cash flows and high cash yields through standardized fixed Feed-in-Tariff offtake contracts with Ontario's Independent Electricity System Operator. The de-risked Portfolio delivers significant efficiencies in operation due to the homogenous nature of the design and equipment selection, and has a demonstrated track record of operating performance.

“This transaction with Ullico is a testament to the strength of BlackRock’s renewable power platform and our commitment to providing value to our clients,” said David Giordano, Global Head of Renewable Power at BlackRock. “Our latest successful exit demonstrates our ability to create outcome-oriented solutions and generate attractive risk-adjusted returns for our clients.”

“The transaction with BlackRock contributes high-quality assets to our portfolio and provides predictable cash yield underpinned by strong off-take contracts,” said Rohit Syal, head of acquisitions for Ullico’s infrastructure business.

The transaction with BlackRock marks Ullico’s sixth investment in the renewable energy sector. “Through this investment, Ullico demonstrates its continued commitment to projects providing clean, sustainable energy across North America,” said Edward M. Smith, President and CEO of Ullico Inc.

Norton Rose Fulbright acted as legal advisors and Black & Veatch acted as technical advisor to Ullico for this transaction. Bank of America Merrill Lynch and Osler are the financial and legal advisors on this transaction for BlackRock.

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