Cologne-based Colonia Real Estate has dissolved its business cooperation with Systaic, a month after the Dusseldorf-based provider of solar panel systems had signalled the partnership was finished. Colonia said its legal assessment was that the cancellation was invalid but it could see 'no basis for further successful cooperation' with Systaic.
Cologne-based Colonia Real Estate has dissolved its business cooperation with Systaic, a month after the Dusseldorf-based provider of solar panel systems had signalled the partnership was finished. Colonia said its legal assessment was that the cancellation was invalid but it could see 'no basis for further successful cooperation' with Systaic.
The parties had signed a master agreement in March 2008 under which Systaic was to provide solar panels for Colonia's own property portfolio and third-party clients up to a volume of EUR 100 mln until end-June 2009.
Colonia said the delayed installation of solar panels on its properties was mainly due to the refusal of the lender of the senior mortgages to accept first ranking easement (the right to use land or property not legally owned) as security for the financing of solar panels. Colonia said the termination of the agreement will not affect its annual results for 2008. The potential lost revenues from the solar projects of EUR 6-8 mln starting in 2009 would reduce potential profits after financing cost, taxes, and depreciation by no more than EUR 1 mln annually, the company added.
