SolarField Investment Management has been formed to provide investors with access to the attractive long-term yields available on investment in government incentivised electricity generating solar photovoltaic installations across the EU.
Based in London, SolarField is preparing to launch a series of investment funds which will invest in a pipeline of identified electricity generating installations in Italy, Germany and Spain.
The funds will invest in both existing operational installations and development opportunities.
Initial yields net of all management charges are estimated at a minimum nine per cent p.a. on an ungeared portfolio with targeted returns of 16 per cent.
The new company, which will aim to raise EUR100m in its first year to be drawn down in EUR30m tranches, will launch its first fund shortly focusing on investments in mainland Europe where generous government sponsored feed-in tariffs – guaranteeing by law a premium over standard wholesale electricity prices over 20 years – and experienced local contractors make it most appealing to investors.
The team is currently in the pre-marketing phase for the first fund presenting the concept to IFAs in the UK.
Chris Wilkins, partner in SolarField Investment Management, says: “Currently, opportunities for private investors to obtain direct exposure to the solar PV sector are very limited. Funding has been available for over 15 years from banks and financial institutions for these projects, demonstrating them to be a tried and tested investment proposition. SolarField is being created to provide investors with access to this highly attractive opportunity. The asset class will allow advisers to introduce diversification to their clients’ portfolios using an investment that has returns largely uncorrelated to traditional asset classes with the additional benefit of significant potential for capital growth.”
