Sky Solar signs LOI for sale of 152 MW solar assets in Japan

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The solar PV market in Japan remains healthy and a key market for investors to generate significant returns. This is evident in the consistent solar activity within the country, such as the announcement from solar developer Sky Solar Holdings that it has signed an LOI to sell various different solar assets from its subsidiary Sky Solar Japan.

The LOI has been signed with Solar Partnership Capital for 152 MW of solar projects in Japan that are either operating stage, under-construction, or ‘shovel-ready.’ The total purchase price has been set at JPY17 billion (US$165 million), subject to closing adjustments.

The LOI terminates on 31 August with the possibility for extension, as satisfactory due diligence is required before approval can be given by Solar Partnership’s investment committee. The company has said that proceed from the sale will be used to repay debts and the reinvest in solar projects in Japan.

“We are pleased to announce the potential sale of part of our solar asset portfolio in Japan,” commented Sky Solar Chief Investment Officer Sanjay Shrestha. “Through this transaction, we remain committed to the development of our remaining projects in Japan while also unlocking value from our 74 MW of completed solar projects and 78 MW of solar projects that have not yet been completed in Japan. With the cash proceeds from this deal, we intend to further invest in solar development projects in Japan and other key target markets that meet our investment resturn criteria.”