US Solar Fund (USF) has finalised an agreement to acquire a 128MWDC utility-scale solar power project in Utah from Longroad Energy Partners.
The solar infrastructure fund focused on the Americas said, following a previously announced exclusivity agreement, it will now buy the Milford Solar Project for an undisclosed sum.
USF said the project has executed a 25-year power purchase agreement, beginning in the second half of 2020.
The project is expected to be funded with USF’s cash equity contribution of $30m (€26.9m), $50m in non-recourse bank debt finance, and the balance from tax equity.
In April this year, USF raised $200m as it joined the London Stock Exchange. At the time, the company, which is structured as a UK investment trust, said it had identified $4.8bn worth of potential assets already, comprising more than 60 projects in 13 US states.
USF said today it continues to due diligence opportunities from its pipeline and expects to announce further investments in due course.
Gillian Nott, chairman of USF, said: “We are delighted to have signed this acquisition agreement for the first of our pipeline investments within just over three months of our IPO.
“The Milford Solar Project, with its 25-year contracted cash flows and A-rated offtaker, provides a strong, long-term foundation for USF’s portfolio.”
Liam Thomas, CIO of USF’s investment manager New Energy Solar Manager, said: “The highly contracted nature of the Milford project makes it an ideal first acquisition, and we are excited to partner with such an experienced developer in Longroad.
”We look forward to announcing further acquisitions in due course.”
