HGCapital acquires 3 Spanish solar plants from AIG Financial Products
HgCapital’s Renewable Power Partners Fund has invested in three Spanish solar photovoltaic (PV) plants with a total output of 35.5 MW. HgCapital is the largest fund for European renewable power projects. It purchased the stake from AIG Financial Products Corp. and from 360 Corporate, a Spanish investment banking firm, for an undisclosed amount.
The Spanish portfolio includes two fixed-axis projects (17.5 MWp) and one project single-axis tracker project (18MWp). All projects qualified for the Spanish PV tariff between May and July 2008. The first two projects were developed by Proener (10 MW), in Castile-La Mancha, and City SolarAG (7.5 MW), in Murcia. The third plant was developed by SunPower in Extremadura.
These PV projects are HgCapital’s first Spanish and first solar investments, and follows HgCapital’s pan-European and pan-technology renewable energy investment strategy. Spain is one of HgCapital’s current priority markets for renewables investment. Jens Thomassen and Luigi Pettinicchio executed the transaction for HgCapital.
Jens Thomassen said: “This is an important strategic investment for HgCapital in creating our first renewables portfolio. It extends our diversification to solar and into Spain in general, where we expect to make further strategic investments. Tightening credit conditions and falling power prices mean there will be a decline in new renewables installations in Europe so we are pleased to have invested in three plants which are operating and generating income”.
Tom Murley, head of HgCapital’s renewable energy practice said: “This is a continuation of our long-held, consistently applied strategy of investing in high quality projects across Europe. The PV projects in this investment use the best equipment and benefit from excellent solar radiation. I am also pleased at our arrangement with 360 Corporate, which adds local content and presence.”