Bluefield Solar Income Fund has announced that it has entered into binding sale and purchase agreements to acquire five new build sub-5 MWp ground-mounted solar photovoltaic PV plants.
The projects are being acquired for a total consideration of £22.7 million (US$33 million), including transaction costs and working capital. Each plant is expected to become operational before 31 March 2017.
Three of the projects, located in Essex, Leicestershire and South Wales, are being constructed by Parabel UK Limited. The two remaining projects are located in Staffordshire and Northamptonshire and are being constructed by Solar Century Holding Limited.
The acquisitions have been fully funded through the placing of new Ordinary Shares announced 20 October 2016, which raised gross proceeds of approximately £60.6 million.
John Rennocks, the Company's Chairman, stated:
"Following the placing announced in October, which exceeded our target raise of £50 million, we are capitalising on the forthcoming closure of the RO scheme set for March 2017 by executing the Company's primary investment strategy of investing in construction projects. The Company is committed to maintaining its strong pricing and return disciplines by preferring growth in primary markets rather than in the secondary markets, where returns are lower as increasing competition squeezes prices in a finite pool of assets."