The Foresight Solar Fund, managed by UK fund manager Foresight Group, has entered a binding contract to acquire the 37.3-megawatt (MW) Bournemouth solar power plant in Dorset, England.
The deal, which represents the ninth large-scale solar power plant acquired by the fund, brings its total assets to 185MW, of which 100MW is operational and generating revenues.
The Bournemouth acquisition is contingent on certain criteria being met by the developer including the plant being built to the required standard, its successful connection to the grid and Ofgem ROC (Renewables Obligation Certificate) accreditation. Foresight is not taking construction risk on the project.
The Foresight Solar Fund, which raised £150 million (€185 million; $253 million) through an initial public offering on the London Stock Exchange in October last year, earlier this week signed a new £100 million debt acquisition facility to fund additional solar acquisitions. The facility was agreed with RBC, RBS and Santander.
It is expected that the facility will be repaid through excess dividend cover, further equity issuance and/or refinancing with a long-term debt facility.
Foresight funds currently manage over £650 million in 27 separate operating solar photovoltaic plants in the UK, US, Italy and Spain. In May 2013, the firm refinanced its UK solar assets through the issue of a £60 million London Stock Exchange-listed index-linked solar bond.