Analysts reckon the portfolio could be worth about $1.5 billion including debt, based on similar deals in the sector which tend to price at $2 million to $3 million per megawatt.
Fund manager Infrastructure Capital Group, for example, paid about $3 million a megawatt for its stake in Engie’s 119 megawatt Willogoleche wind farm last week, in a deal that also also had exclusive rights to a development pipeline of about 1330MW of wind and solar projects.
Potential buyers said FRV and its bankers had yet to outline exactly how the selldown would take place – only that FRV was keen to consider options to realise some of its investment, and recycle proceeds into development projects.
Infrastructure funds were also not told how much debt was held in the portfolio, which would determine the size of the equity cheque.
FRV has seven solar farms and projects in Australia according to the company’s website, including producing assets at Clare and Lilydale in Queensland, Moree in NSW and the Royalla Solar Farm in the ACT. The developments include Winton in Victoria and Chaff Mill in South Australia.
The portfolio deal comes hot on the heels of a spike in buyer interest in Australian renewable energy assets. UK group John Laing is in the final stages of auctioning its Australian wind farms, while ASX-listed Infigen Energy is being acquired by Spanish company Iberdrola and ICG recently agreed terms to buy Engie’s assets.