May 14 (Renewables Now) - NextEnergy Solar Fund Ltd (LON:NESF) on Thursday announced the sale of two subsidy-free solar projects under development with a combined capacity of 115 MW to a subsidiary of NextPower Development Ltd.
The agreed price is GBP 11.5 million (USD 14.1m/EUR 13m).
The sale will result in a net internal rate of return (IRR) significantly higher than the fund's annualised target rate of 7%-9%. The move is in line with NextEnergy's strategy of offloading subsidy-free development assets that are not expected to meet its financial targets.
NextPower, which has been acting as developer for NESF since the fund's initial public offering (IPO) in 2014, is under the common control of the NEC Group and is related to the fund.
NESF is looking to add up to 150 MW of operational subsidy-free capacity to its portfolio by constructing projects that are expected to bring a rate of return in line with or higher than the 7%-9% return range.
NESF's portfolio of operating solar assets has a total capacity of 755 MWp, most of which located in the UK.
(GBP 1.0 = USD 1.222/EUR 1.131)