KKR in $1bn Spanish renewables deal

Following fast on the heels of its foray into German telecoms, the US alternatives investor has announced a partnership with Gestamp Solar.

Global investment firm KKR has reached an agreement to acquire an 80 percent stake in Gestamp Solar, a Madrid-headquartered solar photovoltaic (PV) developer and operator, from Gestamp Renewables.

The deal values Gestamp Solar at an enterprise value of around $1 billion, with both parties committing to operate up to 2.5 gigawatts (GW) of installed capacity by 2020.

Founded in 2005, Gestamp Solar currently has 300 megawatts (MW) of PV projects in operation or construction in 18 countries, with a further 2.2GW of projects in development.

“Gestamp Solar will be a key platform for KKR, developing utility scale solar PV on a global level and offers the opportunity to own development capabilities in solar PV complementary to our presence in operational wind and solar assets worldwide through our partnership with Acciona and KKR investments in the US and Canada,” said Jesus Olmos, member and head of European Infrastructure at KKR, in a statement.

KKR paid €417 million for a one-third stake in Acciona Energia International, the international energy generation business of Madrid-listed developer Acciona, in June last year.

The Gestamp deal comes just a day after KKR announced a partnership with Dutch investment firm Reggeborgh to invest in the expansion of Deutsche Glasfaser (DG), a company which plans, builds and operates fibre optic networks in Germany.

Both the DG and Gestamp deals are being financed by the $3.1 billion KKR Global Infrastructure Investors II fund, which closed earlier this month slightly above its hard cap. The firm’s first infrastructure fund closed on $1 billion in 2012.