PARIS, June 30, 2015 /PRNewswire/ --
- Conquest advised Solairedirect on its sale of two power plants in France representing a total of 23 MegaWatts, one of the biggest such deals in France this year;
- This sale confirms the attractiveness of solar energy for long-term institutional investors in combined context of climate change and low yield environment.
Solairedirect, the fast growing competitive global solar power company, sold two of its operating plants, representing 23MW, to a European investment vehicle backed by insurance companies. Conquest acted as exclusive financial advisor to Solairedirect for this transaction. It is one of the largest solar transactions to take place in France this year. These 2 power plants, located near Bordeaux in South-West France, have a 20-year power purchase agreement with national incumbent utility Electricité de France (EDF).
Amaury Korniloff, Deputy General Manager of Solairedirect said: "This transaction was run in 7 weeks in a swift and efficient manner with the excellent support of Conquest. "
This transaction attracted more than 20 bidders from France, the Netherlands, Switzerland, the UK and Germany. Frédéric Palanque, Managing Director of Conquest Paris office said: "We were delighted to be part of the team that handled the sale. We are proud to be supporting one of the most high profile players in the global renewable energy market, contributing to the management of their asset base according to the highest industry standards."
Solar energy has reached an inflexion point that has put it on a firm growth trajectory, and this deal confirms the high attractiveness of solar brownfield assets to European institutional investors. The global increase in electricity prices, combined with the continuous and sharp decrease of solar panels and equipment costs, places solar electricity price models at cost parity in many markets, breaking away from a former subsidised model and offering a competitive economic model suitable for long-term real assets alternative investments.
Institutional investors in particular are further shifting their attention to low risk and long duration renewable energy assets in the midst of global concern about climate change, as illustrated by announcements made by the international investment community in the wake of COP21 during the Climate Finance Day on May 22nd in Paris. These solar assets are especially attractive to institutional investors with buy & hold strategies due to investment horizons of up to 30 years, longer than the more traditional private equity firms. In effect, they answer their search for long-term sustainable, predictable and low volatility cash yields that current capital markets do not necessarily offer.
Conquest is an international investment banking firm and asset manager owned by its directors. Conquest has developed a significant expertise in a broad range of transactions and strategic situations in various industries. It is actively working in the Infrastructure space and advising, structuring, raising capital and managing portfolios of selected best-in class renewable energy assets in Europe, and selected international markets.
About Solairedirect SA
Solairedirect is a solar power company operating across four continents. The Company was founded in 2006 with the mission of making solar power more competitive than other energy sources. Solairedirect has developed a distinctive scalable business model as a 100% solar power company with the aim of creating value all along the value chain from development to construction, services and investment.
For more information, visit: http://www.solairedirect.com
For more information, visit: http://www.conquest-advisory.com
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SOURCE Conquest Advisory LLP