UK-focused income fund Bluefield Solar has announced the acquisition of a portfolio of 15 operational solar plants for £106.6m, including working capital.
The deal may see the final consideration increased by up to £2.1 million, depending on securing asset life extensions, the investment manager said in a media announcement on Monday (24 August).
The acquired portfolio includes 15 ground-mounted plants. Eight of the sites are in south west England, two in Wales and five in central and eastern England. Two of these projects are accredited under the feed-in-tariff (‘FiT’) scheme
Between 2021-2033, with 2033 being the year in which the subsidies on the earliest plants begin to expire, the proportion of regulated revenues from this portfolio is projected to be around 66%. This compares to 57% for the company’s existing portfolio.
“This is an excellent acquisition by the company,” said John Rennocks, chairman of Bluefield Solar.
“This acquisition will be immediately incremental to earnings and further underpins our projected results and dividends for the current financial year ending in June 2021 and beyond.
“The board and our advisor continue to carefully assess a strong pipeline of opportunities across both primary and secondary markets.”
Bluefield has also successfully secured new financing to support the deal, it confirmed. Bankers at NatWest have agreed to extend a new £110m, three year, loan facility to the company.
“It not only combines the addition of a portfolio of high Renewable Obligation Certificate (ROC) banded assets with bespoke low cost financing, but also enables the company to move its level of gearing in line with the board’s target,” Rennocks added.