Texas developer sells solar portfolio for $100 million

Fengate Real Asset Investments announced a $100 million equity commitment and co-development partnership with Texas-based PowerFin Partners, along with the acquisition of a 9.1 MW portfolio of operating solar projects in Austin and San Antonio.

June 12, 2018 John Fitzgerald Weaver

Image: Fengate

Project development: knocking on the doors to find the building owners, educating them on the value of solar power, and signing contracts – is a money maker. Private equity firms see gold investing in this sector, as it gives them access to higher returns that come with the ability to put large sums of cash to play in a medium risk environment. In the first quarter, greater than 7.7 GW of solar power plant assets various stages changed hands.

Texas developer, PowerFin Partners, hit that solar-powered paydirt by selling rights to build up a $100 million portfolio of solar projects in Austin and San Antonio to Canadian investment group Fengate Real Asset Investments. PowerFin will also offer portfolio co-development services, helping to bring the projects from contract signing to electricity producing assets.

Fengate Director of US Infrastructure, Greg Calhoun, suggested Texas was the fastest growing market in the United States, and that the projects they were acquiring are, “attractive assets with 20- and 25-year power purchase agreements from highly rated counterparties.”

Fengate also purchased 9.1 MW-DC of operational projects in Austin and San Antonio from PowerFin.

Fengate has been increasing its U.S. presence, as well its solar power investing on an international scale. The company closed on a $100 million acquisition of 46 MW UK portfolio in 2015.

This is the fifth solar business deal noted on Fengate’s website.

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