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(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Thursday said it has agreed to buy a series of portfolios of US commercial and industrial solar and energy storage projects, together with a 50% interest in the platform that has created them, for USD150 million.
SDCL Energy Efficiency will buy four portfolios generating over 175 megawatts of electricity in total and a 50% interest in Onyx Renewable Partners and its follow-on pipeline from funds managed by Blackstone for USD150 million. The acquisition will be funded from existing cash reserves and debt facilities, SDCL said.
Blackstone will retain a 50% stake in Onyx.
The four portfolios comprise over 200 operational, construction and development stage rooftop, carport and "private wire" ground-mounted solar PV projects, located in 18 US states. The operational projects are contracted under long-term power purchase agreements.
"The Onyx projects are well aligned to SEEIT's investment policy as they increase the supply of renewable energy generated on-site and help to reduce greenhouse gas emissions arising from the supply, distribution and consumption of energy," the company said.
Completion of the acquisition is expected in the coming weeks, after satisfaction of some customary conditions and consents, SDCL said.
"We are delighted to further diversify the SEEIT portfolio through the acquisition of these on-site solar and storage projects and to partner with Blackstone in one of the largest sustainable energy initiatives of its kind in the US," added Jonathan Maxwell, chief executive of Sustainable Development Capital LLP.
SDCL Energy Efficiency shares were trading 0.1% higher in London on Thursday at 107.61 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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