KGAL’s fifth European renewable energy fund has added two solar parks to its portfolio in Germany.
The KGAL ESPF fund has invested an unspecified amount to acquire the 40MW Calvörde West solar park and the 20MW park in Grauingen near Magdeburg.
Both projects are expected to be operational by the autumn of 2025, KGAL said, adding that the acquisition complements the 60MW Calvörde Ost solar park, which the fund acquired earlier this year and will soon be in operation.
Calvörde Ost is the second solar park from KGAL ESPF 5 to be connected to the power grid, following its development by KGAL.
Carsten Haubner, portfolio manager at KGAL, said: “Thanks to its very good positioning at the upper end of the price range in the latest EEG [German Renewable Energy Act] auctions, the entire Calvörde cluster has guaranteed attractive cash flows for the next 20 years.”
KGAL ESPF 5 has so far invested in nine solar, wind and battery storage projects, along with three development platforms across six European countries. These investments amount to a capacity of 1.1GW, with an additional 2GW in the development pipeline.
Fundraising for KGAL ESPF 5 is expected to close in October 2024, the manager said.
Jonathan May, head of institutional business international at KGAL, said the impact fund was nearing its final closing, with 93% of the €351m equity already allocated.
“At the same time, the first distributions are already flowing back to investors, with an attractive double-digit target return [net internal rate of return] for the portfolio.”
The core-plus fund targets renewable energy generation through solar, wind and storage technologies.
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