Everwood Capital agreed today the sale of its 50MW photovoltaic plant Desafío Solar, located in the municipality of Escatrón in the Aragon region, to Falck Renewables SpA, an Italian listed company and a global player in the field of renewable energies.
The terms of the sale represent for Fund IV a capital gain (net of expenses and tax impact) of 51 per cent and an annual return (IRR) of 26 per cent.
Since 2015 Everwood Capital has completed over 50 acquisitions of merchant and regulated renewable energy projects for over 2.000 MW. Everwood Fund IV has completed the acquisition of over 10 projects with over 800MW, successfully executing on the strategy set since its incorporation.
The sale of Desafío Solar to Falck Renewables provides strong validation to Everwood Fund IV investment thesis, having completed the investment cycle of its first utility scale merchant photovoltaic plant successfully, executing on all its value creation milestones up to its exit:
• Thorough analysis and acquisition of a project with all the necessary permits to start construction
• Structuring and closing of long term project financing on favorable terms
• Structuring and closing of attractive PPA contract allowing to hedge pool price volatility
• Sale of guarantees of origin of the plant to an international buyer
• Tendering of EPC contract for the construction of the plant in a competitive process with over 20 interested parties
• Quality control and supervision in the construction of the plant
• Operation and successful divestment of the plant
The plant sale process has attracted high interest from industrial and financial local and international buyers having signed 22 confidentiality agreements and having received 11 bids. Such interest reflects the attractiveness of operating utility scale PV plants in Spain for the investment community.
Everwood has been advised in the sale process by PWC acting as M&A advisor and Araoz & Rueda acting as legal adviser.
José Antonio Urquizu, founding partner of Everwood Capital, says: “The successful sale of Desafío Solar is the best testimony to the value creation potential existing in bringing an empty plot of land to a fully operational and connected utility scale PV plant. This transaction provides strong validation to the investment thesis of our Funds IV and V.”
Alfredo Fernández Agras, founding partner of Everwood Capital, says: “We are convinced based on the track record of previous funds, our in-depth knowledge and experience in the PV sector and our highly skilled team that our Funds IV and V will replicate the success achieved in our previous funds. Having been pioneers in investing in this merchant strategy gives us a strong competitive advantage that we will exploit in the benefit of our investors.”
Everwood Capital started fundraising its Fund V towards the end of 2020 with a target of EUR500 million having already closed commitments for cEUR100 million with a significant part of the capital coming from investors from its previous funds. Fund V counts since inception with secured projects for a total of 1,096 MW in central and southern Spain representing over 70 per cent of the fund’s investment target.
Everwood targets its funds to international and Spanish institutional investors and to private banking clients where it works with entities like Andbank and Santander Private Banking.
