February 1, 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.
BlackRock helps investors build better financial futures. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of December 31, 2018, the firm managed approximately $5.98 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock.
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For more than 90 years, Ullico has been a proud member of the labor movement, keeping union families safe and secure. From insurance products that protect union members, leaders and employers, to investments in building and infrastructure projects that have created thousands of union jobs, our customers continue to trust us with protecting their families, employees and investments. The Ullico Inc. Family of Companies includes: The Union Labor Life Insurance Company; Ullico Casualty Group, LLC; Ullico Investment Company, LLC; and Ullico Investment Advisors, Inc. For additional information, visit www.ullico.com.