Keppel Infrastructure Trust (KIT) and US investor Equitix Investment Management have acquired 90% of a solar portfolio from German renewables company Enpal for €218m.
KIT will pay €109m for its 50% stake in a special purpose vehicle that acquired the asset, with the other 50% stake being held by Equitix and its co-investors.
Enpal will retain a 10% stake in the solar portfolio and will continue with the maintenance of the solar systems under a 20-year agreement.
The Enpal portfolio is projected to include over 60,000 bundled solar photovoltaic (PV) systems across Germany with a projected combined generation capacity of 585MW. The bundled PV solutions are also projected to include more than 55,000 battery storage systems and more than 30,000 electric vehicle charging equipment.
Kevin Neo, CEO of Keppel Infrastructure Fund Management, KIT’s manager, said:“ Our investment in Enpal’s substantial home solar portfolio marks KIT’s first acquisition in the solar energy sector and will expand our exposure to renewables beyond onshore and offshore wind.”
Neo said the acquired solar portfolio will provide strong and stable earnings visibility to bolster KIT’s distributions to unitholders, as we grow KIT’s investments in renewables to 25% of AUM by 2030”.
KIT is expected to fund the investment with internal sources of funds and/or external borrowings.
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