Foresight Group’s Portfolio Acquisitions In Spain

Osborne Clarke has advised Foresight Group on the deal.

Foresight acquired a 26.1 MW Virgen del Carmen solar plant from IM2, and a 94MW windfarm portfolio from wpd AG, both in Spain. A team from Osborne Clarke’s Spanish, German and UK offices advised on the transaction.

The 26.1 MW Virgen del Carmen asset, based in Huelva, in the South-West of the country, is Foresight Solar Fund Limited first acquisition in Continental Europe and also represents its solar initial investment in subsidy-free solar.

The acquisition will represent an investment of €20.2 million (£18 million) once construction is completed and will benefit from a long-term Power Purchase Agreement (“PPA”) entered with Shell Energy Europe Limited, a subsidiary of Royal Dutch Shell Plc, for the sale of electricity under a fixed price until 2030. The asset is fully consented, with construction expected to start at the end of September 2020, with operations targeted to start in the third quarter of 2021. The acquisition will be funded using the Company’s revolving credit facilities.

The 94MW windfarm portfolio in Spain was purchased from wpd AG (“wpd”), and is the second acquisition made by €340 million Foresight Energy Infrastructure Partners. Comprise two operational wind farms located in the Castile and León region of Spain, “El Poleo” and “Las Panaderas”. The wind farms were commissioned in Q4 2019 having been developed, financed and constructed by wpd and comprise 27 Siemens Gamesa Renewable Energy (“SGRE”) G-132 3.465MW wind turbine generators, with SGRE also providing long term O&M services. The portfolio additionally benefits from ongoing operational management services provided by wpd windmanager, a wholly-owned subsidiary of wpd. Revenues are underpinned by a 10-year, fixed price PPA with Statkraft, with further revenue protection resulting from participation in the second and third Spanish tender rounds of the Spanish support scheme for renewable energy.

Foresight is a long-time client of Osborne Clarke. The team was led by the Partner Luis Castro (Picture), based in Osborne Clarke’s Madrid office and included German Partners Christoph Torwegge and Antje Günther, and UK Partner Jakub Kubicki.

Involved fees earner: Luis Castro – Osborne Clarke; Antje Günther – Osborne Clarke; Jakub Kubicki – Osborne Clarke; Christoph Torwegge – Osborne Clarke;

Law Firms: Osborne Clarke;

Clients: Foresight Group;