HgCapital has acquired stakes in three Spanish solar photovoltaic plants, from AIG Financial Products Corp. and Spanish investment bank 360 Corporate. No consideration represented an enterprise value of €300 million.
HgCapital’s Renewable Power Partners Fund has invested in three Spanish solar photovoltaic (PV) plants. The consideration represents an enterprise value of €300 million, with the total output of 35.4MW. HgCapital purchased the stake from AIG Financial Products Corp., an AIG company and from 360 Corporate, a Spanish investment banking firm, for an undisclosed amount.
With this investment, HgCapital has controlling interests in 35 European renewable energy projects in construction, operation or development. The portfolio includes 300MW in operation or construction and a development pipeline of an additional 300MW, making HgCapital one of Europe’s largest and most experienced renewable energy investors. Hg’s operating and construction investments will reduce European CO2 emissions by an estimated 600,000 tonnes per year. This is HgCapital’s first renewable energy investment in 2009. In 2008, the firm invested in the €185 million in the award winning Havsnäs wind farm in Sweden and expanded its UK wind farm development portfolio to 350MW.
The Spanish portfolio includes two fixed-axis projects (17MWp) and one project single-axis tracker project (18MWp). All projects qualified for the Spanish PV tariff between May and July 2008.
These PV projects are HgCapital’s first Spanish and first solar investments, and follows HgCapital’s pan-European and pan-technology renewable energy investment strategy. Spain is one of HgCapital’s current priority markets for renewables investment. Jens Thomassen and Luigi Pettinicchio executed the transaction for HgCapital.
Jens Thomassen said:
“This is an important strategic investment for HgCapital in creating our first renewables portfolio. It extends our diversification to solar and into Spain in general, where we expect to make further strategic investments. Tightening credit conditions and falling power prices mean there will be a decline in new renewables installations in Europe so we are pleased to have invested in three plants which are operating and generating income. This is another example of HgCapital’s broad presence and ability to execute in the European renewables market drawing on our deep sector expertise, experience and financing abilities.”
Tom Murley, head of HgCapital’s renewable energy practice said:
“This is a continuation of our long-held, consistently applied strategy of investing in high quality projects across Europe. The PV projects in this investment use the best equipment and benefit from excellent solar radiation. I am also pleased at our arrangement with 360 Corporate, which adds local content and presence.”
HgCapital was advised by Cuatrecasas, Herbert Smith, Advokatfirman Oebergs, Deloitte and OST Energy. The 360 Corporate team, led by Iñigo Gortázar and Juan Ignacio Martí Junco, was advised by Allen & Overy.