NextEnergy Acquires Somerset PV Plant
NextEnergy Solar Fund Limited (NESF)has announced the acquisition of a special purpose vehicle (SPV), owning an operating solar power plant. The acquired plant is the Higher Hatherleigh Solar Power Plant located in Somerset, which was energised in April 2013. The plant is accredited under the 1.6 Renewable Obligation Certificate regime (ROCS) and has been accruing revenues since its energisation. NESF has acquired the plant for a consideration of £7.11 million (£1.165M/MWp) and retains all net cash flows accrued since energisation. Five per cent of this consideration sum has been withheld by NESF for one year and is payable based on the performance of the plant.
The plant was identified in NESF's Prospectus as a "˜core shortlist' asset. The capital committed in the acquisition amounts to c. 8% of the proceeds raised in NESF's recent IPO. The acquisition was undertaken on a full-equity basis.
Commenting on the acquisition, Kevin Lyon, Chairman of NESF, said, "Acquiring this operating asset represents the first significant step in deploying the capital raised via NESF's IPO, in accordance with its investment policy. The plant has a lengthy operating history which enabled us to conduct effective due diligence and evaluate the quality of its construction, components and historical performance. We look forward to announcing further progress on investing the IPO proceeds shortly.
