KGAL is to sell five photovoltaic plants in Spain by the end of the year. The company has successfully implemented a structured sales process in order to take advantage of what it see as the currently optimal market environment and high demand.
KGAL acquired five solar farms in the autonomous province of Castilla la Mancha between 2007 and 2011 for several mutual funds (Infra Class Energy 3, 4 and 5). Two solar farms, each with a nominal capacity of five megawatts, were sold to a Spanish fund in July 2019. The transfer of ownership of three further parks, with a total nominal capacity of 31 megawatts, to the same investor is planned for the fourth quarter of 2019.
At the end of 2011, the Spanish government decided to retroactively reduce the feed-in tariffs. Thus, the originally planned revenue could not be achieved. “The sale enabled us to secure an attractive return for investors,” explains Michael Ebner, Managing Director of Infrastructure at KGAL Investment Management GmbH & Co. KG. He went on to say that this was accomplished thanks to active asset management and optimally timed sale, even despite the severe cuts in feed-in tariffs.
Regardless of this sale, KGAL intends to continue to grow and become the market leader for investments in renewable energy assets in selected countries. In photovoltaics, the company is focused on the sunniest countries, Portugal, Italy and Spain, and on wind and hydro power in Scandinavia.
