Macquarie Asset Management has reached an agreement to acquire a 50% stake in UK renewables developer Island Green Power.
The investment, via the Macquarie Green Investment Group Renewable Energy Fund 2 (MGREF2), will enable the asset manager to expand its European solar presence.
Concurrently with the main transaction, Macquarie Asset Management has also agreed to acquire a stake in a ready-to-build 65MW solar project located in Suffolk, UK, from Island Green Power.
The project, which includes the potential for 50MW of battery storage, closely aligns with MGREF2’s mandate to develop, construct, and operate renewable energy projects over the long-term.
The deal is expected to reach completion by the end of the second quarter of 2022.
The acquisition of the Suffolk solar project is expected to reach completion soon after.
Financial terms of the two transactions have not been disclosed.
Island Green Power is primarily focused on the development of utility-scale solar plants and has an established pipeline in countries that include the UK and Spain.
Over nearly a decade, Island Green Power has developed more than 1 GW of renewable energy assets and secured a development pipeline with a combined capacity of 11 GW.
Macquarie Asset Management will invest alongside Island Green Power’s shareholders and senior management team, who will all remain invested in the business.
Macquarie Asset Management managing director David Tilstone said: “Solar energy is a cornerstone technology that will play a central role in helping countries meet their net zero targets.
“Island Green Power has a strong track record of delivering successful solar projects, particularly in the UK.
“We are delighted to support Island Green Power as it continues to expand its pipeline of projects across the globe, and we are excited to take their Suffolk solar development project forward.”
Island Green Power chief executive Ian Lawrie added: “Macquarie’s expertise in the renewable energy sector will also be instrumental in supporting the development of our current and future solar and battery projects.”