Project summary
- FG were instructed to undertake a RICS Red Book valuation on behalf of our client, James Hamilton-Stubber of the Aughentaine Estate, for succession planning purposes
- The client was a joint-landlord for a permitted 21.6MW wind farm in County Tyrone. The NTR plc owned scheme is expected to generate enough power for over 20,000 homes per year
- Consent for the wind farm was gained in 2018, with amendments to the original planning permission approved in 2021 and a lease was entered in late 2022
Solution
- FG corresponded with our client and RES, the developer of the wind farm on behalf of NTR plc, to fully understand the history of the project
- An inspection of the site, which was mid-construction as at the date of valuation, was undertaken and the Lease reviewed to understand the contractual risk
- FG then evaluated the planning, construction, operational and decommissioning risk associated with the wind farm
- We then prepared a Discounted Cash Flow (DCF) and used alternative investment types to determine a net initial yield the market would apply to the income due under the Lease to arrive at a Market Value.
Benefits
- We produced an RICS Red Book valuation report that our client could use to support their succession planning
- Our client was provided with a comprehensive report that they could rely on for tax and succession planning purposes
- Our client received a copy of the DCF with full financial projections and supporting assumptions, giving an indication of how their land value will change over the life of the wind farm
- Our client had the benefit of Fisher German’s 20+ years’ experience advising clients on wind farms across the UK
