KGAL – an alternative investment manager – has acquired a majority stake in Italian renewables developer Baltex Progetti through its fund KGAL ESPF 5.
Baltex Progetti has a pipeline of over 300 MW of wind and solar power projects in Italy.
The solar projects are located in the Italian regions of Sardinia and Sicily, and the first phase of the projects is scheduled to be completed in 2026.
“For KGAL ESPF 5, holding a majority stake has the major advantage of securing access to a broadly diversified, promising project pipeline in the highly competitive renewables market via just one transaction,” says Michael Ebner, Managing Director and Head of Sustainable Infrastructure at KGAL Investment Management.
“Moreover, we will cover the entire value chain from the early development phase to the subsequent operation of the plants as IPP. Accordingly, we expect to achieve an above-average return on the investment,” he added.
In January 2022, KGAL Investment Management acquired a 50% stake in GP Joule Projects.
Earlier this week, Bluefield Solar, the income fund focused on acquiring and managing UK-based renewable energy and storage assets, acquired a 93.2 MW operational solar and wind portfolio from a UK-based fund manager for £112.4 million (~$138.4 million). The portfolio comprises 15 solar PV projects with a total installed capacity of 64.9 MW and four wind projects with a total installed capacity of 28.3 MW. The portfolio is located across England, Wales, Northern Ireland, and Scotland.
According to Mercom’s Q1 2022 solar funding and M&A report, 23 GW of large-scale solar projects were acquired in Q1 2022 compared to 13.1 GW in Q4 2021. Project developers and independent power producers were the most active acquirers in Q1 2022, with over 17 GW of projects being acquired, followed by investment firms and funds, which acquired 3.6 GW.