Investor Foresight Solar has acquired a 99MW portfolio of three greenfield solar projects in Spain in a deal worth up to €72m.
The UK-based company said construction on the “subsidy-free” developments in Andalusia will start in summer 2021 with operations expected a year later.
Foresight said a long-term Power Purchase Agreement will shortly be signed with a major European energy supplier.
The company will also 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 acquisition of the development rights for the assets in Andalusia has been funded using the company’s revolving credit facilities.
Development rights have been priced at €15m, with the full €72m to be paid once construction is completed. The vendor was not disclosed.
Foresight Solar chairman Alex Ohlsson 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.”