Foresight Solar buys 99MW worth of energy investments in Spain

Jersey-based investment firm Foresight Solar has reached an agreement to purchase three subsidy-free Spanish greenfield solar assets with a total throughput of 98.5MW of energy to add to their portfolio.

The UK firm admitted it expects the total transaction to cost in the range of €72 million once construction has been finalised. This total includes the cost of covering development rights, which were funded using revolving credit facilities.

Officials at Foresight said a Power Purchase Agreement (PPA) will be signed with a major European energy provider for the greenfield assets, which are located in the southern Spanish region of Andalusia.

The company are also set to implement a ten-year rolling foreign currency hedging strategy covering future cash flows and to reduce fluctuation in currency exposure on returns.

The acquisitions will add to the UK firm's current Spanish portfolio, resulting in the company managing a total of 200MW of solar farms within the country.

In total, Foresight manages a total of 58 assets across the UK, Australia and Spain with a total installed capacity of 994MW once fully operational. Its investments outside the UK will represent approximately 17% of the gross asset value of the company and its subsidiaries.

Alex Ohlsson, Chairman of Foresight Solar, said: "This acquisition builds on the Company's recent first investment in Spain and represents a meaningful step forward for the Company's international diversification and its increased presence in the subsidy-free solar market.

"The ability of the Investment Manager to secure such an attractive investment opportunity for Foresight Solar once again demonstrates the benefit of its significant regional presence across Europe. We look forward to updating investors on progress on the Spanish portfolio as major milestones are met in the coming year."

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