Foresight Solar agrees to a EUR 72m contract in Spain for 99 MW
A 99MW portfolio of three greenfield solar projects in Spain has been purchased by Investor Foresight Solar in a deal worth up to EUR 72m.
The UK-based company said that construction in Andalusia on "subsidy-free" projects would begin in the summer of 2021, with operations planned a year later.
Foresight has said that a long-term Power Purchase Agreement with a major European energy supplier will be signed shortly.
In order to significantly reduce currency fluctuation exposure on returns, the business will also introduce a 10-year rolling EUR/GBP foreign currency hedging strategy covering the potential cash flows produced by the asset.
Using the company's revolving credit facilities, the purchase of development rights for properties in Andalusia was financed.
Development rights have been priced at €15m, with the full €72m to be paid once construction is completed. The vendor was not disclosed.
Foresight Solar chairman Alex Ohlsson 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.”