The Irish investment fund Solar21 is set to purchase six photovoltaic solar farms in southern Italy from the global provider of power electronic systems AEG Power Solutions in a deal worth €25m.
Set up in 2010 Solar21 is aiming to build up a fund of more than €100m from Irish investors to invest in and develop solar farms and installations using photovoltaic (PV) technology across Europe. Typical investments come from existing pension funds of individuals and companies as well as cash investors.
The fund is apparently focusing on the European economies that offer the most attractive long-term feed-in-tariff agreements in relation to solar farm developments.
Speaking about the deal with AEG today, Solar 21 CEO Michael Bradley said the fund continues to achieve "above average" returns for its clients.
"We are delighted to add these six farms in southern Italy to our existing portfolio," he said.
Solar21 started negotiations with AEG Power Solutions back in April. The latter has been around since 1887 and its two main areas of expertise across the globe at the moment are renewable energy and energy efficiency solutions.
As for Solar 21 its equity is typically generated from cash and pension investors who invest sums from €50,000 upwards.
The fund is also at advanced stages of negotiations to buy an additional 12 megawatts of solar farm capacity with a value in excess of €45m, according to Bradley.
As well as Italy, Solar 21 is active in Germany right now.