Ares Management Corporation (NYSE: ARES) ("Ares") announced today that funds managed by its Infrastructure and Power strategy have completed the sale of the 525 MW Aviator Wind project, which was owned, constructed and managed by Ares and developed by Apex Clean Energy. In two recent transactions, Ares sold a majority stake in the project to CMS Energy and a minority interest to Kansai Electric Power Co. Ares retains a small minority interest in the project. Terms of the transaction were not disclosed.
Located in Coke County, Texas, Aviator Wind is the largest single-phase, single-site wind project in the U.S. Ares secured turbine equipment and O&M services from GE Renewable Energy and extended its relationship with BHE Renewables with a tax equity commitment for the project. In late 2019, Ares and Apex structured and secured renewable power purchase agreements with Facebook and McDonald’s to have Aviator Wind support each corporation’s renewable energy goals.
Aviator Wind will support Facebook’s operations in Texas and will help the company reach its goal to reduce its greenhouse gas emissions by 75% and support 100% of its operations with renewable energy in 2020. Facebook’s portion of the Aviator Wind project will be 199.76 MW.
McDonald’s partnership with Aviator Wind was the company’s first-ever long-term, large-scale virtual power purchase agreement and will utilize 220 MW of the project. Once online, this renewable energy project will represent progress toward McDonald’s climate action target to partner with franchisees to reduce greenhouse gas emissions related to McDonald’s restaurants and offices by 36% by 2030.
Aviator Wind is expected to start operations by the end of 2020.
"Our sale to CMS and Kansai is an exciting outcome and exemplifies our value-creation approach to developing and building large-scale renewable power projects," said Keith Derman, Partner and Co-Head of Ares Infrastructure and Power. "Monetizing a project of this scale during the pandemic demonstrates the stability of climate infrastructure assets and delivers an attractive outcome for our investors."
"We worked with Apex Clean Energy, a successful renewable energy company and long-standing partner, to complete development and build the largest single-phase, single-site wind project in the U.S.," said Andy Pike, Partner and Co-Head of Ares Infrastructure and Power. "Further, we are thrilled to help companies like McDonald’s and Facebook achieve their long-term sustainability objectives and hope to continue these relationships in the future."
Over the last three years, Ares Infrastructure and Power has established itself as a leading climate infrastructure strategy, with more than $2 billion invested across 18 transactions. In 2020, Ares is one of the largest builders of wind projects in the U.S., with nearly 1 GW under construction and expected to realize commercial operations this year.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated businesses across Credit, Private Equity and Real Estate. Ares Management’s investment groups collaborate to deliver innovative investment solutions and consistent and attractive investment returns for fund investors throughout market cycles. Ares Management's global platform had approximately $165 billion of assets under management as of June 30, 2020 with more than 1,300 employees operating across North America, Europe, Asia and Australia, pro forma for the acquisition of SSG Capital Holdings Limited which closed on July 1, 2020.
About Ares Infrastructure and Power
Ares Infrastructure and Power ("AIP") strategy seeks to provide flexible capital for cash-generating assets across the climate infrastructure, natural gas generation, and energy transportation sectors. AIP leverages a broadly skilled and cohesive team of more than 25 investment professionals with deep domain experience and has deployed nearly $9 billion of capital in more than 200 different infrastructure and power assets and companies.
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