German investor Hansainvest Real Assets is committing €23m to invest in a portfolio of 85 solar farms in Germany with a combined capacity of 116MW.
The mezzanine capital is being invested as a subordinated loan in the independent energy generator BPG IPP, which has been specially founded by the Sunfarming Group for this purpose.
Hansainvest said the money will be used to develop more solar parks in Germany and elsewhere.
The existing projects are located in Mecklenburg-West Pomerania, Brandenburg, Saxony, Saxony-Anhalt and Thuringia.
Hansainvest was advised on the transaction by Fieldfisher, Renerco Plan Consult and Baker Tilly.
Capcora was mandated financial advisor for the Sunfarming Group.
Hansainvest Real Assets head of portfolio management infrastructure Christoph von Geldern said: “We are expanding our presence on the German photovoltaic market to include a number of high-quality plants and are thus attaining a cash flow that is plannable in the long term – with extremely lean cost structures.
“The low volatility of electricity production with photovoltaic plants as well as the fixed, state-guaranteed feed-in tariffs over 20 years ensure that forecasts may be made with a high degree of reliability.”
Sunfarming Group and BPG IPP chief executive Martin Tauschke said: “Hansainvest Real Assets is the ideal partner for BPG IPP.
“The instrument allows us the financial leeway to push ahead with our expansion in Germany and abroad.”
“This fresh capital gives us the possibility to actively shape the future photovoltaic landscape in Germany, and also in Europe and Africa.”