SDCL Energy Efficiency Income Trust PLC, or SEEIT, has agreed to acquire a 125-MW portfolio of cogeneration assets in Spain from an unnamed seller for €64 million.
The portfolio consists of five combined heat and power plants, two olive processing plants and two biomass plants. It benefits from long-term contracted revenues to mitigate exposure from any fluctuations in commodity prices.
The deal includes project equity in the portfolio, which has a weighted average remaining term of approximately 14 years. SEEIT, which is listed on the London Stock Exchange, also plans to keep in place existing project debt finance facilities associated with the portfolio.
The company expects completion of the acquisition in the coming weeks, subject to the satisfaction of certain customary conditions and consents.
