As a subsidiary of the Isolux Corsan group, Group T-Solar got its start in late 2006 and within four years its revenues brought in €110.2 million ($154 million).
The assets being acquired includes 42 solar PV plants of which 34 are located in Spain and the remaining plants are based in Italy. The two sites have an aggregate installed capacity of 168 MW and a generation capacity of over 250 GWh per year of clean energy. The assets will be housed in a new company under the name, T-Solar Global Operating Assets.
Grupo T-Solar, which is one Europe’s largest solar photovoltaic (PV) power generator, will continue to own a 51% equity stake of the business and will carry out management services.
In addition, MEAG and KKR entered into an agreement with Grupo T-Solar which gives the company the option to acquire new solar plants developed by Grupo T-Solar once they are fully operational.
Grupo T-Solar currently has 61 MW under construction and a pipeline of 900 MW throughout Southern Europe, South America, India and the US. Grupo T-Solar’s CEO stated in the press release that he intends on to increasing the generation capacity from 168 MW to more than 500 MW by 2014.
Grupo T-Solar makes the second major European infrastructure investment for KKR. The firm’s first European renewable energy investment took place in June where it formed a joint venture with the Italian energy company Sorgenia to produce wind energy in France.
With more than $61 billion of assets under management, KKR will continue to build out its infrastructure platform. Jesus Olmos, the European Head of KKR’s infrastructure business insists that renewable energy is one of the most promising areas of infrastructure and that the Spanish renewable sector continues to be a hot spot for future investments.
Munich Re will tap into its Renewable Energies and New Technologies (RENT) fund to finance its new investment. MEAG’s managing director, Dieter Wolf, stated in the press release that the firm will continue to invest in wind and solar farms as well as new technologies that will increase generating capacity.
The insurance group, Munich Re, is represented through the asset management arm of MEAG Munich. MEAG currently manages close to €202 billion in of which €10 billion is in real estate.