Foresight Solar Fund Limited Acquisition of Spanish solar portfolio (3415K)
January 04 2021 - 2:00AM
UK Regulatory
TIDMFSFL
RNS Number : 3415K
Foresight Solar Fund Limited
04 January 2021
Foresight Solar Fund Limited
("Foresight Solar" or the "Company")
Acquisition of Spanish solar portfolio
Foresight Solar, a fund investing in a diversified portfolio of
ground-based solar PV assets in the UK and internationally, is
pleased to announce the acquisition of a portfolio of three
greenfield solar assets in Spain.
The 98.5 MW portfolio is comprised of three subsidy-free
greenfield assets located in the Andalusia region, Spain. Total
expected transaction costs are expected to amount to EUR72 million
once construction is completed and include the acquisition of
development rights for approximately EUR15 million. Construction is
expected to start in summer 2021, with operations targeted to start
in June 2022. The acquisition follows Foresight Solar's acquisition
of the 26.1 MW Virgen del Carmen asset in Huelva, Spain in
September 2020, its first acquisition in the territory.
The acquisition of the development rights for the assets in
Andalusia has been funded using the Company's revolving credit
facilities. It is the Company's current intention to introduce a
conservative level of project finance at portfolio level to
partially fund construction milestones, with the remaining funding
being provided by the Company's existing revolving credit
facilities. The Company's total gearing and long-term gearing as a
percentage of gross asset value will remain within the investment
policy limits following the acquisition.
It is anticipated that a long-term Power Purchase Agreement will
shortly be signed with a major European energy supplier, securing
an attractive level of contracted revenues. The Company will
implement a 10-year rolling EUR/GBP foreign currency hedging
strategy covering the future cash flows generated by the asset to
substantially eliminate currency fluctuation exposure on
returns.
The Company has been able to leverage the significant regional
expertise of its investment manager, Foresight Group, which,
through its offices located in Madrid, will be managing a portfolio
of more than 200MW of subsidy-free renewable assets in Spain when
including the Andalusia portfolio.
Following the acquisition, the Company's portfolio comprises 58
assets, based in the UK, Australia and Spain, with an installed
capacity of 994 MW once fully operational. The Company's
investments outside the UK will represent approximately 17% of the
gross asset value of the Company and its subsidiaries.
Commenting on the acquisition, Alex Ohlsson, Chairman of
Foresight Solar, said:
"This acquisition builds on the Company's recent first
investment in Spain and represents a meaningful step forward for
the Company's international diversification and its increased
presence in the subsidy-free solar market. The ability of the
Investment Manager to secure such an attractive investment
opportunity for Foresight Solar once again demonstrates the benefit
of its significant regional presence across Europe. We look forward
to updating investors on progress on the Spanish portfolio as major
milestones are met in the coming year."
For further information, please contact:
Foresight Group
Jonathon McManus +44 (0)20 3667 8147
JMcManus@ForesightGroup.eu
InstitutionalIR@ForesightGroup.eu
Citigate Dewe Rogerson +44 (0)20 7638 9571
foresightsolar@citigatedewerogerson.com
Nick Hayns
Elizabeth Kittle
Lucy Gibbs
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END
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