HgCapital’s Renewable Power Partners Fund has invested in three Spanish solar photovoltaic plants.
HgCapital’s Renewable Power Partners Fund has invested in three Spanish solar photovoltaic plants.
The consideration represents an enterprise value of EUR300m, with the total output of 35.4MW.
HgCapital purchased the stake from AIG Financial Products and 360 Corporate, a Spanish investment banking firm, for an undisclosed amount.
With this investment, HgCapital has controlling interests in 35 European renewable energy projects in construction, operation or development.
The portfolio includes 300MW in operation or construction and a development pipeline of an additional 300MW, making HgCapital one of Europe’s largest renewable energy investors.
Hg’s operating and construction investments will reduce European carbon dioxide emissions by an estimated 600,000 tonnes per year.
The Spanish portfolio includes two fixed-axis projects and one project single-axis tracker project. All projects qualified for the Spanish photovoltaic tariff between May and July 2008.
The photovoltaic projects are HgCapital’s first Spanish and first solar investments, and follow HgCapital’s pan-European and pan-technology renewable energy investment strategy.
Spain is one of HgCapital’s current priority markets for renewables investment.
Jens Thomassen and Luigi Pettinicchio executed the transaction for HgCapital.
Thomassen says: ‘This is an important strategic investment for HgCapital in creating our first renewables portfolio. It extends our diversification to solar and into Spain in general, where we expect to make further strategic investments. Tightening credit conditions and falling power prices mean there will be a decline in new renewables installations in Europe so we are pleased to have invested in three plants which are operating and generating income. This is another example of HgCapital’s broad presence and ability to execute in the European renewables market drawing on our deep sector expertise, experience and financing abilities.’
Tom Murley, head of HgCapital’s renewable energy practice, adds: ‘This is a continuation of our long-held, consistently applied strategy of investing in high quality projects across Europe. The photovoltaic projects in this investment use the best equipment and benefit from excellent solar radiation. I am also pleased at our arrangement with 360 Corporate, which adds local content and presence.’
