EL SEGUNDO, Calif, Oct. 13, 2016 (GLOBE NEWSWIRE) -- Landmark Infrastructure Partners LP (the “Partnership”) (NASDAQ: LMRK ) today 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. (“Canadian Solar”) (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.”
About Landmark Infrastructure Partners LP The Partnership is a growth-oriented master limited partnership formed to acquire, own and manage a portfolio of real property interests that the Partnership leases to companies in the wireless communication, outdoor advertising and renewable power generation industries. Headquartered in El Segundo, California, the Partnership owns and manages a diversified portfolio of real property interests, which includes long-term and perpetual easements, tenant lease assignments and, to a lesser extent, fee simple properties, primarily located in the United States. As of August 30, 2016, the Partnership’s portfolio consisted of 1,965 tenant sites.
Cautionary Note Regarding Forward Looking Statements
Disclosures in this press release contain certain forward-looking statements within the meaning of the federal securities laws. Statements that do not relate strictly to historical or current facts are forward-looking. These statements contain words such as “possible,” “if,” “will,” “expect” and “assuming” and involve risks and uncertainties including, among others that our business plans may change as circumstances warrant. Accordingly, readers should not place undue reliance on forward-looking statements as a prediction of actual results. Examples of forward-looking statements in this press release include the expected closing date of the acquisition, the accretive nature of the transaction, expected cash flows and the potential increase in the Partnership’s third quarter 2016 cash distribution. For more information concerning factors that could cause actual results to differ materially from those conveyed in the forward-looking statements, please refer to the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC. Any forward-looking statements in this press release are made as of the date of this press release and the Partnership undertakes no obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or of which the Partnership becomes aware, after the date hereof, unless required by law.
CONTACT: Marcelo Choi Vice President, Investor Relations (310) 598-3173 ir@landmarkmlp.com
