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Greencoat acquires PV portfolio from BlackRock/Lightsource partnership

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Greencoat Capital LLP is to acquire solar PV projects totalling 156MW from BlackRock BlackRock and Lightsource on behalf of some UK pension funds.

The transaction will bring the total solar generating capacity of funds managed by Greencoat to almost 880MW.

The PV assets acquired are almost all Renewables Obligation accredited sites with an average of approximately 16 years of support remaining. One, the 14.4MW Charity Farm installation, is backed by a Contract for Difference (CfD).

BlackRock’s Global Renewable Power team acquired a 90% stake in the portfolio in 2017, while Lightsource had a 10% stake in the portfolio. The partners said they had “delivered financial and operational improvements throughout its holding period and realised the de-risked portfolio at a premium for investors”. Lightsource bp will continue to provide asset management and operational services.

Karin Kaiser of Greencoat Capital said,“… We continue to see a strong opportunity for solar aggregation in the UK, and an active near-term pipeline.

“This transaction delivers to investors in Greencoat Solar II long term secure income cash flows that over the long lifetime of these assets will be uncorrelated to general stock market factors.”

Rory O’Connor, global chief investment officer and head of Europe for BlackRock Renewable Power, said, “The structural transition to a lower carbon future is providing attractive investment opportunities in renewable power globally. There is a significant re-allocation of capital underway that underscores the resilience of the sector, even while public markets face uncertainty as the world addresses the Covid-19 pandemic.” He said Blackrock had  achieve the second close of its Global Renewable Power Fund III at $1.5 billion, reflecting “strong ongoing demand from our clients looking for renewable power and climate infrastructure investment opportunities that can deliver attractive and sustainable returns.”

Greencoat Capital’s advisors for the transaction were: Eversheds Sutherland – legal; Evergy – technical; EY – finance.