KGAL is selling a 152MW renewables portfolio comprising wind and solar assets in France and Germany to Italian independent power producer ERG.
The portfolio consists of seven solar parks and three wind farms in France with a total installed capacity of 56.7MW and 40.6MW respectively, and five wind farms in Germany with a total installed capacity of 55.1MW.
The assets were commissioned between 2012 and 2017.
The portfolio’s assets were part of a mandate managed for a German pension fund and KGAL implemented a structured sales process on behalf of its investor in order to benefit from the current positive market environment.
“We are pleased to have achieved a very attractive return for our investor with this transaction, due to our active portfolio and asset management, which included several optimisations in the portfolio during the holding period” said Michael Ebner (pictured), managing director and head of sustainable infrastructure at KGAL Investment Management.
Florian Martin, managing director and head of business development, added: “Optimised asset divestment is becoming an increasingly important part of the investment strategy in KGAL’s renewable energy funds.
“In addition to our classic buy-and-hold approaches, in ESPF 4 and the new ESPF 5 we primarily pursue an active build-and-sell strategy.
“This is attracting significant interest from investors and we anticipate the first close for our impact fund ESPF 5 in the fourth quarter.”