FORESIGHT SOLAR FUND LIMITED (Alliance News) - Foresight Solar Fund Ltd on Thursday said it sold a 50% stake in its 99 megawatt Lorca portfolio in Spain.
The deal is for EUR26.9 million, Foresight Solar said.
The Jersey-based investment firm, which is focused on solar panels and battery storage assets said the stake in Lorca was bought by a Luxembourg-based subsidiary of Evangelische Bank, representing a 21% premium to their third quarter holding value.
The exit internal rate of return stands at 12.1% on funds invested in the stake to date, Foresight Solar said.
Proceeds will be used to reduce the investment firm's variable rate revolving credit facility in order to lower gearing and interest expenses.
The Lorca portfolio includes 30 MW solar farm Las Salinas, 49MW Los Llanos, and 20MW Los Picos. Foresight bought the assets three years ago.
Chair Alexander Ohlsson said: "After a comprehensive analysis of our portfolio, we concluded these assets were the ideal option to start our divestment process. This deal clearly exemplifies our strategy: we acquired Lorca at the ready-to-build stage and capitalised on the investment manager's expertise to construct the assets and bring them to operations, realising the full financial upside for the company. We are now selling a stake at a premium to crystallise value and recycle capital into other options while maintaining exposure to an asset that will continue to deliver long-term revenues and contribute to dividend cover."
Shares in Foresight Solar were up 0.5% at 96.00 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
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