Gaia Renewables 1 acquires stakes in two AIIM projects
Cape Town Stock Exchange-listed renewable energy investment fund Gaia Renewables 1 has acquired stakes in two renewable-energy plants after receiving project lender approval and after Competition Commission approval was received in April.
The R200-million deal, initially funded with debt and equity, will see the fund gaining a 10% holding in each of the Linde and Kalkbult solar PV plants, in the Northern Cape.
The IDEAS Renewable Energy Fund, which is managed by African Infrastructure Investment Managers (AIIM), is the seller.
The two new renewables assets were built during the government’s first round of allocations in the Renewable Energy Independent Power Producer Procurement Programme.
Further, infrastructure and agriculture asset management company Gaia Fund Managers has concluded 16 renewable-energy transactions on behalf of investors, with Gaia Renewables 1 already owning a 16% stake in the Tsitsikamma Community Wind Farm, in the Eastern Cape.
“These renewable-energy projects, built with a robust and low-risk approach, have demonstrated an excellent operational record and we are confident they will continue to deliver inflation-linked returns to our investors,” says Gaia Fund Managers CIO Dr Hendrik Snyman.
“With Gaia's expertise, we also see exciting opportunities to further optimise and enhance the use of these assets in the years ahead.”
Further, the fund will issue a batch of preference shares to existing shareholders with additional issuances to follow over the next 12 months to fund additional transactions.
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