WIND LEADS THE WAY – Kilmeedy Windfarm Ltd represents an ideal EIIS investment opportunity
The newly established firm McKeogh Gallagher Ryan Accountants (“MGR Accountants”) have announced they are raising EIIS investment via private placing for Kilmeedy Windfarm Limited. The promoters are two experienced wind industry professionals and the wind farm, based outside Newcastle West Co Limerick, offers investors an excellent opportunity to avail of EIIS relief – 30% tax relief up front and a further 11% after year 3, subject to meeting certain employment creation conditions.*
Tax Partner Mary McKeogh is leading the fundraising and will professionally structure the private placing. Mary is one of the country’s leading tax practitioners and EIIS experts with over 20 years advisory experience. She has been involved in raising and investing over €30m through BES—via private placing and designated investments funds. Commenting on EIIS and the choice of wind farm Mary said: “Wind farms are ideal for EIIS as they have an established business model. The development and operational costs can be projected with a relatively high comfort level so both promoters and investors are reassured that the risks are kept to a minimum. Of course no investment is risk-free but we are finding that financiers and investors are willing to invest in wind as it considered a relatively stable sector and one which is growing as our every increasing energy demands highlight the need for greater use of renewable energy sources. Government supports through the REFIT 2 scheme and a target of generating 40% of electrical consumption from renewable resources by 2020 also strengthen the sector’s appeal to investors.”
Kilmeedy Windfarm Limited is located outside Newcastle West, Co Limerick. The wind farm will be developed on a single owner site at elevations between 210 and 228metres. The target completion date for fully operational turbines, supplying electricity to the grid is Q2 2014. The project has secured grid connection on Gate 3 of Ireland’s network connection policy for renewable generators. The terms of a Power Purchase Agreement are in place.
December 2015 is the planned exit date at which time it is intended the investors will be bought out. The promoters also plan to comply with the EIIS employment conditions to secure the full EIIS tax relief available.*
Eoin Ryan is the commercial partner overseeing the investment. He has structured and negotiated a range of M&A deals and investment buy-outs and is known for his rigorous approach and financial insight. Commenting on EIIS and Kilmeedy Windfarm Limited Eoin said, “EIIS is a valuable source of funding for indigenous qualifying companies and can help strengthen both their balance sheet and their ability to secure further bank funding. The new scheme’s requirement of employment creation to secure the additional 11% relief has incentivised promoters to create new jobs which has knock-on benefits across the economy.
“The reduction in the holding period to three years is a comfort to investors who have a shorter period to wait for their funds but also puts it up to promoters to deliver in a shorter time frame. This makes EIIS projects like wind farms more attractive as once the wind farm is constructed there are less variables to worry about impacting on the company’s performance. Carrying out thorough wind surveys at the outset means even the wind variable can be quantified with a good level of accuracy. And a business where the main raw material is free is a comfort to any investor.”