Solar power investor NextEnergy Solar Fund (NESF) has agreed to sell two subsidy free assets under development with a capacity of 115MW to a subsidiary of NextPower Development for a combined total consideration of £11.5m. The transaction, which is expected to exchange and complete today (14 May), will result in a net IRR, after NESF's transaction costs, 'significantly in excess' of its annualised target return of 7% to 9% per annum. The company said the disposal of the assets is in line with its strategy of adding up to 150MW of operational subsidy-free capacity to the portfolio, by building those projects which are expected to generate a rate of return in line with or in excess of NESF's target equity annualised return range of 7% to 9%. It said it will consider divesting those subsidy-free development assets in its portfolio that are in excess of that capacity or that are not expected to generate financial returns that are in line with its target range. NextEnergy Solar Fund said the sale followed a review by the board and its independent advisers which concluded that these two subsidy free development assets, amounting to 115MW, no longer meet financial targets.
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