International law firm Bird & Bird has created the legal blueprint for the first transaction of its kind where existing nuclear licensed land is being transferred for new nuclear development on a freehold basis.
In a monumental milestone in the UK’s ambitious new nuclear power programme, the sale of land by EDF Energy Nuclear Generation Limited for construction and development of Sizewell C nuclear power plant, was carried out on a freehold basis rather than the industry tradition for new nuclear projects being achieved by way of long lease. The freehold transaction structure enhances the fundability of the project, particularly amongst international investors who are accustomed to seeing major energy and infrastructure projects being held freehold – particularly those of such magnitude.
The transaction also carefully choreographs intricate sequencing for the relocation of facilities from the operational Sizewell B site to facilitate the development of the new nuclear plant in a way that prioritises the ongoing safety and security of Sizewell B whilst facilitating the construction of this massive project on neighbouring land.
John Danahy, partner in the London Real Estate practice, said: “This transaction marks the culmination of four years of hard work and innovation from the team. As the architects of this transaction, we are proud to have led the matter from start to finish. It is a fantastic achievement for our client and the team to see our deep understanding of new nuclear projects, the regulatory landscape and our expertise in energy and real estate come together to deliver this key project for our client. The legal structure we created can now be considered the blueprint for future new nuclear land transactions involving nuclear licensed land.”
