John Laing Environmental Assets (JLEN), the listed environmental infrastructure fund, has announced the acquisition of Pylle Southern Solar Park for a total consideration, including working capital, of £6.1 million.
Commissioning of Pylle Southern Solar, located near Shepton Mallet in Somerset, was completed in December 2015 and it has a total generating capacity of 4.99MW.
The Solar Park will benefit from the UK feed-in tariff for 20 years from the date of commissioning. This tariff is linked to an annual increase in the UK Retail Price Index. The electricity price assumptions underpinning the project are based on export tariff levels in the short term, and over the long term are in line with JLEN's current view on electricity prices.
JLEN has purchased the entirety of the shares from the founding shareholders and Green Nation, the developers of the park. Green Nation was also responsible for the development of the Monksham Solar Park in which the Company invested in July 2015.
The acquisition was funded by a draw-down under the company's revolving credit facility. This facility, originally secured in October 2014 at a level of £50 million, has been extended, on the same terms, to £65 million.