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Fengate pays $195m for three Canadian Solar projects

The acquisitions set a precedent for potential future deals between Fengate and one of North America's largest solar developers.

Infrastructure and real estate private equity firm Fengate Capital Management has added three Canadian Solar assets to its renewable energy portfolio in a transaction worth C$257 million ($195.94 million; €182.47 million).

Fengate purchased three solar projects in Sault Ste. Marie, Ontario that generate a combined 59.8MW. The investor said this was its largest power investment to date.

The deal includes Fengate assuming all outstanding debt for the three assets, and Canadian Solar said it will continue to provide operation maintenance. The assets, which began operation between 2010 and 2011, have an average of 15-year power purchase agreements signed with regional utility Independent Electricity System Operator.

The investment brings Fengate’s utility-scale solar capacity in Ontario to 105MW.

George Theodoropoulos, Fengate’s managing director for North American infrastructure, said the transaction may be the beginning of future deals between the investor and Canadian Solar, one of North America’s largest solar developers.

“The Sault Ste. Marie solar portfolio is fully-contracted with a strong operating record,” he said. “Fengate and its investors will benefit from this new relationship with Canadian Solar.”

Fengate is a real asset investment firm with a focus on infrastructure, real estate and private equity with $2.9 billion of assets under management. Its renewable energy portfolio includes solar, wind, hydro and biomass projects in Canada and the UK.