NextEnergy Solar Fund Limited (NESF) has announced the signing of the share purchase agreement (SPA) to acquire a special purpose vehicle (SPV) owning the rights to construct the 3.8 MW Brickyard solar power plant, located in the Midlands, UK.
Brickyard will be constructed under an Engineering, Procurement and Construction contract (EPC) negotiated by NESF.
Under the terms of the EPC, commissioning is expected to take place during August 2014. The plant will be accredited under the 1.4 Renewable Obligation Certificate regime. NESF has committed to acquire the SPV, subject to certain timing and performance criteria being achieved, for a total consideration of up to £3.9 million (US$6.4 million).
The plant was identified in NESF's Prospectus as a 'core shortlist' asset, and will be acquired on a full-equity basis. The capital committed to the acquisition amounts to 5% of proceeds raised in NESF's IPO.
NESF raised £85.6 million at IPO and 52% of the proceeds have now been allocated across five assets with a total operating capacity of 38 MW.
NextEnergy Solar Fund is a specialist investment fund focused on operational solar photovoltaic assets located in the UK. The Company intends to provide investors with a sustainable and attractive dividend that increases in line with RPI over the long term and an element of capital growth through the re-investment of net cash generated in excess of the target dividend.