RREEF Infrastructure added another project to its Spanish solar portfolio following the acquisition of a 49 percent stake in a 50-megawatt solar power plant starting construction near Seville, to the south of Spain.
German renewables group Solar Millennium and OHL Industrial, a subsidiary of Spanish developer OHL, were the sellers, but will still retain a combined 51 percent stake in the Arenales project, as the power plant is known. According to a statement from Solar Millennium, the solar plant was bought by the €2.1 billion RREEF Pan-European Infrastructure Fund, RREEF's first infrastructure vehicle.
The transaction price was not disclosed, but a spokesman from Solar Millennium said that similar-sized solar power plants in Spain have tended to cost between €300 million and €400 million. RREEF did not comment on the deal.
Sollar Millennium said in a statement that the shareholders have also secured financing for the project, with about “three quarters of the construction and investment costs [to] be financed with [a] bank loan” from Spanish and French banks. The Arenales project is pre-registered with the Spanish government and should receive an above-market feed-in tariff of €0.475 per kilowatt-hour when it starts feeding energy into Spain’s electricity grid in 2013.
Recently, RREEF and French investor Antin Infrastructure Partners have acquired 90 percent of two Andalucian thermosolar plants from Spanish developer ACS. The plants – known as Andasol I and Andasol II – are also located in the south of Spain, near Granada, and are estimated to have an enterprise value of between €920 million and €955 million.
RREEF, the alternative investment arm of Deutsche Bank, raised €2.1 billion for its first infrastructure fund, which closed in 2007. As of March 31, 2011, the fund had invested in 10 European assets. RREEF has also raised at least €620 million for its second infrastructure fund, and is aiming to hold a final close on €2 billion to €3 billion next year.