CKD Galbraith appointed to market renewable energy investment opportunity
CKD Galbraith has been appointed to market a renewable energy opportunity that will benefit from Government incentives to encourage the production of electricity from sustainable sources.
The Firm is sole agent for the 25-year lease of a 0.32-acre (0.13-Ha) greenfield site at Galston in Ayrshire. The land comes ready with planning consent for a single wind turbine up to 48m tip height, suitable for a 225kW turbine with 33.5m hub height. The property benefits from a Grid connection, an offer of £31,120 having been received in May 2012 for a total exporting capacity of 200kVA into the Farm electricity meter (copy available on request).
The agricultural land, currently used for silage and grazing, is at Langside Farm, off the B7037 about 24 miles south of Glasgow and eight miles south-east of Kilmarnock. The Kilmarnock to Dumfries road (A76) is approximately three miles west, with the M74 Motorway 23 miles to the east. Rights of access will be granted across Langside Farm.
According to data produced on the Government approved wind speed database (Noabl), the average wind speed 25m above ground level is 7.2 metres per second. Proposed terms are available on request but the main provisions are:
- Up to 25 years, to include construction, operation and decommissioning;
- One-off premium payable at the date of entry (offers in excess of £225,000);
- Nominal £100 rent PA (no review clause);
- Break clause with nine months’ notice;
- Escrow account to cover costs of decommissioning;
- The Lessor will have first call on any electricity produced for their own use, paying at the same price as any electricity sold to the Grid in accordance with the Lessee’s Power Purchase Agreement.
Mike Reid, Head of CKD Galbraith’s Utilities Department, explained that the property would likely be of interest to investors looking to benefit from the Renewables Obligation, requiring electricity suppliers to source an increasing proportion of electricity from renewable sources.
“Not only is this is an ideal location for a wind turbine in Ayrshire, this is a turn-key site with both planning permission and a Grid connection. With the early installation of a wind turbine, this investment could be producing financial returns within a short time span,” said Mr Reid.
Each party will be responsible for their own legal costs, the tenant to pay any registration costs and Stamp Duty Land Tax arising together with any VAT.
Find out more about this investment opportunity. Please note that viewings are by prior appointment only by calling 01334 659988.