Financing of WindparkBy Dr. Reinhard Nacke
The last meeting of the GGI Practice Group Real Estate being held in Leiden/NL under others discussed how banks financing windparks can sufficiently be secured by transfer or title in the turbines. The problem arises if as in most cases the turbines are built on rented ground. This can have as a consequence that they become property of the ground owner due to the fact that they are qualified as buildings. This is no problem in those countries where the piece of ground and the building on it can have different owners as this is the case i. a. in the Czech Republic, in Denmark, India, Malta and Japan. In other countries like Bulgaria and Germany, however, this is a very major difficulties which can lead to problems with financing of a windpark and in the end can endanger the whole project.
Thereby, in Germany it is not clear whether or not turbines have to be qualified as movables or immovables. Different courts have different opinions about this. A decision of this question by the German Federal Civil Court is still outstanding. Therefore, the problem can be solved in Germany only if the turbines are erected on the ground based on a servitude. If such servitude is registered prior to erection of the turbine or if at least the ground owner has granted permission for registration of the servitude by notarial deed, the turbines are qualified as movables and can be transferred as a security to the financing bank.
Dr. Reinhard Nacke
FPS Fritze Wicke Seelig, Law Firm, Dusseldorf, Germany, T: +49 211 302 01 50
FPS Rechtsanwälte und Notare is a fully independent German law firm with offices in Berlin, Düsseldorf, Frankfurt a. M. and Hamburg. FPS currently employs over 110 lawyers and notaries. One of the firms core areas of expertise is the entire range of Real Estate Law. Dr. Reinhard Nacke is World Chairman of the GGI Practice Group Real Estate and is working as partner of FPS in Düsseldorf.