TRIG acquires two solar farms

The deal comes as the UK-listed renewables fund completes a £66.2m C share issue, short of its £85m original target.

The Renewables Infrastructure Group (TRIG) has bought two solar parks in the south of England.

The company has acquired 100 percent of Devon-based Tamar Heights Solar Park, which has been recently connected to the grid with a generating capacity of approximately 11.8 megawatts (MW).

It has also taken an initial 50 percent stake in the 11.7MW Stour Fields Solar Park, which is located near Colchester in Essex. TRIG has entered into a put and call option for the acquisition of the remaining 50 percent. The farm is expected to be connected to the grid by 31 March.

TRIG will pay a total amount of between £34.5 million (€41.8 million; $57.3 million) and £37 million for the assets, pending value protection arrangements. The investments, which are unlevered at the project level, have been funded via the group’s acquisition facility and existing cash resources.

The assets have an expected life of 25 years upon commencement of operations, with site leases also for 25 years. The transactions will nearly double the fund’s solar capacity to 62MW.

TRIG today also announced that it had raised £66.2 million through the C share issue it announced earlier this month. The firm was initially seeking to raise £85 million, with the potential to increase the pot to £120 million should sufficient progress be made on the pipeline. The C shares will convert into ordinary ones on a “NAV for NAV” basis at the time of conversion, scheduled to occur no later than 31 July 2014. 

The proceeds are earmarked to fund the acquisition of five projects with a generating capacity of around 78MW, of which Tamar Heights and Stour Fields solar farms formed part. Further acquisitions being considered include three onshore wind farms in the UK and Ireland.

In a statement, the firm also said then that it had commenced discussion on more than 200MW of other potential acquisitions.