Foresight Solar Fund Announces New Solar Plant
Foresight Solar Fund has announced that it has entered into a binding contract to acquire its seventh large-scale solar plant, the 10.7MW Hunters Race plant.
The Hunters Race plant was identified in the Company's IPO Prospectus as an "Exclusive Portfolio" asset under exclusivity, without legally binding contracts in place. This announcement marks the change in status and the plant is expected to be connected to the grid and fully operational before the end of March 2014 and accruing revenues for the Company from that point.
In line with previous acquisitions, the Company will not be taking construction risk which is a fundamental part of its low risk strategy.
The newly acquired plant is located on low-grade agricultural farmland of approximately 12.4 hectares on what was formerly a quarry in West Sussex.
At IPO, the Company's £150 million funds were fully allocated to a "Committed Portfolio" of six large scale UK solar assets. Two further plants from the "Committed Portfolio", Castle Eaton (Swindon SPV) and High Penn (Calne SPV), together totalling 28MW, are expected to be grid connected shortly, bringing the cumulative total invested in operational and revenue generating assets to more than 60MW or more than 50% of the Company's assets.
The Company has confirmed its intent to deliver a target dividend of 6p per ordinary share in respect of its first financial year, rising annually with RPI thereafter, and enabling the Company to support its strategy, unique amongst its solar peer group, to sustain the NAV, offering the potential for further capital growth.
Jamie Richards, Partner and Head of Infrastructure at Foresight said, "We are pleased to have binding contracts in place to acquire the Hunters Race plant. We remain on target to have the Foresight Solar Fund portfolio fully operational by the end of March. The promising outlook for the UK solar sector, the quality of the underlying assets and Foresight's track record in the sector continues to provide investors with an attractive opportunity to secure valuable inflation-linked yield and the potential for capital growth."
