Bluefield Solar Income Fund (BSIF) has added a 4.1MWp solar farm to its portfolio following the acquisition of the owner, Bluefield Harrier.
BSIF bought the company for £14.4 million which through its wholly-owned subsidiary New Energy Business Solar owns the plant.
The site, which was commissioned in 2011, is connected to Toyota’s manufacturing plant in Burnaston, Derbyshire and also derives revenue from a fully RPI-linked 25 year feed-in tariff.
BSIF’s board claims the remaining period of the site’s FiT is the most beneficial aspect of the acquisition, giving the company greater access to the higher rate no longer available to new solar farms.
The sale brings BSIF much closer to Bluefield Harrier after managing partners James Armstrong, Michael Rand and Giovanni Terranova already owned shares in Harrier. All three, referred to as Bluefield Related Parties, benefit to the tune of a combined £275,770.03 in respect of their exsiting shares in Harrier.
The acquisition brings the total energy capacity of the company's portfolio to 402 MWp.
BSIF also announced that as well as the new plant, it was able to complete construction of a further eight projects connected prior to 31 March 2016, qualifying under the Renewable Obligation regime for 1.3 Renewable Obligation Certificates.
John Rennocks, chairman of BSIF, said: “In conjunction with the successful connection of eight construction projects under the 1.3 ROC regime, this acquisition demonstrates the continued growth and development of the company.
“With our portfolio now exceeding 400 MWp, and with the proportion of total fixed revenues being approximately 99% of total revenues until the end of the current financial year in June 2016, and then in excess of 65% until the end of June 2017, our shareholders are benefiting from the company adopting a highly defensive power price strategy whilst also delivering a sector leading dividend.”
BSIF intends to meet or exceed its target dividend of 7.07p per ordinary share in respect of the current financial year, although this is below the 7.25p paid per share in the previous year.