Foresight Solar Fund closes acquisition of 114 MW solar portfolio

Foresight Solar Fund has completed the acquisition of the entire interest in a portfolio of 15 operational solar assets in the UK with a total installed capacity of 114 MW for a consideration of approximately GBP47 million (USD61.7848 m), including the economic benefit of all cashflows from 1 April 2018.

This acquisition, as previously outlined, will be funded by the net proceeds of the oversubscribed fundraise of approximately £48.1 million completed in July this year through a placing of new ordinary shares of no par value in the Company. The acquisition is part of the pipeline of value-accretive investment opportunities announced in the Company’s 2017 Audited Annual Report and Financial Statements.

The portfolio consists of 15 assets of the 18 assets announced in June – the remaining assets remain under exclusivity and will be subject to further due diligence before the assets can be acquired. All the assets are accredited under the RO scheme, receiving a weighted average of 1.41 ROCs/MWh.

Following the acquisition, the Acquisition Portfolio brings the Company’s total installed capacity to 788 MW across 43 solar assets which is expected to drive efficiencies of scale in terms of ongoing operational costs.

The transaction is a lower risk and cost-efficient acquisition for the Company as the portfolio was previously owned by funds managed by Foresight Group LLP. All assets have been in operation for a minimum period of two years and have been managed by Foresight Group's in-house Asset Management team, which will continue to manage the assets.

The Acquisition Portfolio currently has debt facilities in place totaling £107.2 million provided by the Royal Bank of Scotland. It is the Company's intention to refinance the portfolio and other UK assets within the next 12 months.