West Sussex development is the seventh solar farm to be added to Foresight's £150m portfolio
Foresight Solar Fund has agreed a deal to acquire the 10.7MW Hunters Race plant in West Sussex, adding a seventh large-scale development to its growing portfolio.
The Jersey-registered investment company said today it has "entered into a binding contract to acquire" the plant, which is situated on 12.4 hectares of low-grade agricultural farmland on what was formerly a quarry.
The Hunters Race project is expected to be connected to the grid and fully operational before the end of March, generating revenues from that point and beating the cutoff point for a reduction in solar subsidies that takes effect from April.
The plant was identified as a potential acquisition in the company's prospectus ahead of a £150m IPO in October. The funds raised were fully allocated in purchasing six large-scale UK solar assets, two of which - Castle Eaton near Swindon and High Penn near Calne in Wiltshire, together totalling 28MW - are expected to be grid connected shortly. Further announcements are expected soon as the company continues to expand its portfolio.
Foresight has targeted delivery of a dividend of 6p per ordinary share and intends to have the portfolio fully operational by the end of next month, it said in a statement.
Jamie Richards, partner and head of infrastructure at Foresight, said the UK solar sector was offering plenty of opportunities for investors.
"The promising outlook for the UK solar sector, the quality of the underlying assets and Foresight's track record in the sector continues to provide investors with an attractive opportunity to secure valuable inflation-linked yield and the potential for capital growth," he said.