Foresight Solar Sells Half Stake in 99-MW Spanish Portfolio
- Foresight Solar Fund Ltd (LON:FSFL) sells 50% stake in 99-MW Lorca solar portfolio, 21% premium to value. Funds will be used to reduce credit facility. 200 MW more divestment underway. Alexander Ohlsson highlights successful acquisition strategy.
UK’s Foresight Solar Fund Ltd (LON:FSFL) has sold a 50% stake in the 99-MW Lorca portfolio of operational solar farms in Spain to a Luxembourg-based fund. The sale, worth EUR 26.9 million (USD 29.2m), is a 21% premium to the assets’ third-quarter holding value. Foresight Solar Fund will use the proceeds to reduce its variable rate revolving credit facility further. The Lorca portfolio consists of three solar farms and holds a ten-year fixed-price power purchase agreement with Statkraft AS. In the first nine months of 2023, it generated 138 GWh of electricity. Discussions are underway for the divestment of approximately 200 MW of operational assets. Alexander Ohlsson, Chair of Foresight Solar, highlighted the successful implementation of the fund’s acquisition strategy.
What Selling of 50% Stake in Lorca Portfolio to Luxembourg-based Fund Means for Foresight Solar Fund?
- The sale of 50% stake in Lorca Portfolio will reduce the fund’s reliance on the debt market.
- This divestment strategy demonstrates Foresight Solar's commitment to provide shareholders with attractive returns.
- The proceeds from the sale will be used to reduce the fund’s variable rate revolving credit facility and free up capital for further investments.
- The portfolio holds a ten-year fixed-price power purchase agreement with Statkraft AS, which will help provide steady returns over the long-term.
- The Lorca Portfolio generated 138 GWh of electricity in the first nine months of 2023, which has made it an attractive investment for the Luxembourg-based fund.
- Discussions are underway for the divestment of approximately 200 MW of operational assets which could further benefit Foresight Solar Fund.