Foresight Solar Fund Limited Acquisition of First Spanish Solar Asset (1499Y)
September 07 2020 - 1:00AM
UK Regulatory
TIDMFSFL
RNS Number : 1499Y
Foresight Solar Fund Limited
07 September 2020
7 September 2020
Foresight Solar Fund Limited
("Foresight Solar" or the "Fund")
Acquisition of first Spanish solar asset
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 its first solar asset in
Spain.
The 26.1 MW Virgen del Carmen asset, based in Huelva, in the
South-West of the country, is the Fund's first acquisition in
Continental Europe and also represents Foresight Solar's initial
investment in subsidy-free solar. The acquisition will represent an
investment of EUR20.2 million (GBP18.0 million) once construction
is completed and will benefit from a long-term Power Purchase
Agreement ("PPA") entered with Shell Energy Europe Limited, a
subsidiary of Royal Dutch Shell Plc, for the sale of electricity
under a fixed price until 2030. The asset is fully consented, with
construction expected to start at the end of September 2020, with
operations targeted to start in the third quarter of 2021. The
acquisition will be funded using the Company's revolving credit
facilities.
In sourcing the acquisition, the Fund has been able to leverage
the significant regional expertise of its investment manager,
Foresight Group, which through its offices located in Madrid
manages an existing portfolio of renewable assets in Spain.
Following the acquisition, the Company's portfolio comprises 55
assets, based in the UK, Australia and Spain, with an installed
capacity of 895 MW.
At the date of acquisition, the Company's investments outside
the UK represent approximately 12.5% of the GAV of the Company and
its subsidiaries.
The Fund will implement a 10-year rolling EUR/GBP foreign
currency hedging strategy covering the future cash flows generated
by the asset to eliminate currency fluctuation exposure on
returns.
Commenting on the acquisition, Alex Ohlsson, Chairman of
Foresight Solar, said:
"This acquisition is a milestone in the development of Foresight
Solar's geographically diversified portfolio, representing the
Fund's first acquisition in Continental Europe and our first
investment in subsidy-free solar. With a long-term, fixed price PPA
in place and a high production profile, the acquisition is a clear
demonstration of our ability to source and deliver stable cash
flows at attractive risk-adjusted returns and marks an important
step in Foresight Solar's international expansion strategy."
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
Louise Mason-Rutherford
Elizabeth Kittle
Lucy Eyles
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END
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