Allianz Renewable Energy Fund has acquired 100% of the 8MW SiSen solar photovoltaic plant located in Foggia, located in the southern Italian region of Puglia.
The facilities have a capacity to produce roughly 12,280 megawatt-hours of solar power annually capable of providing enough electricity for about 3,070 homes.
Dr. Armin Sandhövel, Chief Investment Officer (CIO) for Infrastructure Equity at Allianz Global Investors commented that the current changes in the Italian feed-in tariff system have already been reflected in the negotiations for the acquisition. Mr Sandhövel added:
“Our investment targets are return-strong projects which already price in regulatory risks like these. This also applies to the Italian photovoltaic market which caused negative headlines during recent months due to its implementation of retroactive feed-in cuts. Projects like SiSen nevertheless meet our high expectations. Therefore, we are happy that we successfully closed a further attractive investment in the interest of our shareholders.”
Norton Rose Fulbright has advised Allianz Global Investors on behalf of the Allianz Renewable Energy Fund on the transaction. The legal advisor and financial advisor to the sellers were NCTM and ValeCap, respectively.
Including the SiSen transaction, the Allianz Renewable Energy Fund portfolio currently comprises solar PV parks located in three different European countries and several German wind parks.
Allianz Renewable Energy Fund was launched in 2012 by Allianz Global Investors as a closed-end fund for institutional investors, which invests in renewable energy projects including wind farms and solar parks in developed countries, with a focus on Europe. The fund closed in September 2013, with investors securing around €150 million.