Foresight Solar Fund acquires 46 MW UK plant

Binding contract now in place to acquire a 46MWp UK solar power plant, the largest solar plant in the UK to date.

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Foresight Solar Fund Limited is pleased to announce that it has signed a binding contract to acquire the 46MWp Landmead asset, the largest solar farm in the UK to date. The plant is located in East Hanney, Oxfordshire and is currently under construction by BELECTRIC UK & BELECTRIC GmBH, a world leader in the construction and operation of solar farms having installed over 1.5GWp of solar power globally. It is expected to be grid-connected later this month and will thus be eligible for the 1.4 ROC rate. Following the acquisition of Landmead, the Company will own and manage four of the UK’s largest solar farms.

The acquisition is subject to certain conditions being met by the developer of the plant, including the plant being built to the required standard and its successful connection to the grid. The Company, in line with its low risk strategy, will not take construction risk for the project.

In total the Company currently manages an operational portfolio of 185MW of UK solar assets and this acquisition will increase capacity to 231MWp, the largest operating solar portfolio amongst the listed peer group.

The Company recently announced £60 million of gross proceeds had been raised in its Initial Placing and Offer, and this will be used together with existing debt facilities to complete the announced acquisitions of Kencot (37.3MWp), Bournemouth (37.2MWp) and Landmead (46MWp). It is expected that the existing acquisition facility will be repaid through a combination of the utilisation of further new equity issuance in early 2015 and/or refinancing with a long-term debt facility.

Commenting on the agreement, Ricardo Piñeiro, Director said:

“This agreement with Belectric to acquire the 46MW Landmead solar plant, will boost the Company’s capacity by around 25% to 231MWp. Following acquisition, FSFL will own and operate four of the largest solar power plants in the UK, with an enterprise value in excess of £300 million, supporting the original objectives of the Company and doubling the size of the company within 15 months of IPO.”