Foresight Solar (FSFL) announces the acquisition of a portfolio of three greenfield solar assets in Spain. The 98.5 MW portfolio comprises three subsidy-free greenfield assets situated in the Andalusia region, Spain. FSFL says that total expected transaction costs are expected to come to €72m once construction is completed and include the acquisition of development rights for approximately €15m. Construction is expected to start in summer 2021, with operations targeted to start in June 2022.
The acquisition follows FSFL’s acquisition of the 26.1 MW Virgen del Carmen asset in Huelva, Spain in September 2020, its first acquisition in the territory. We covered this announcement here.
FSFL is funding the Andalusia project using its revolving credit facilities. The fund says that it is its current intention to introduce a conservative level of project finance at the portfolio level to partially fund construction milestones, with the remaining funding being provided by its existing revolving credit facilities. FSFL notes that total gearing and long-term gearing as a percentage of gross asset value will remain within the investment policy limits following the acquisition.
‘Long-term PPA expected to be shortly signed with a major European energy supplier’
FSFL says that it is anticipated that a long-term Power Purchase Agreement (PPA) will shortly be signed with a major European energy supplier, securing an attractive level of contracted revenues. FSFL 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.
Following the acquisition, FSFL’s portfolio comprises 58 assets, based in the UK, Australia and Spain, with an installed capacity of 994 MW once fully operational. FSFL’s investments outside the UK will represent approximately 17% of the gross asset value of the company and its subsidiaries.
FSFL: Foresight Solar buys three-asset 98.5 MW Spanish portfolio