Home Private Equity Schroders Acquires £700 Million UK Solar Portfolio

Schroders Acquires £700 Million UK Solar Portfolio

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Schroders Acquires £700 Million UK Solar Portfolio

Global investment manager Schroders’ renewable infrastructure investment unit Schroders Greencoat announced the acquisition of it will purchase a majority of Toucan Energy’s solar portfolio, consisting of 53 operating solar farms in the UK.

Valued at approximately £700 million (USD$888 million), the portfolio has a combined capacity of 513.5 megawatt peak energy (MWp) across England, Wales, and Northern Ireland, powering the equivalent of approximately 184,000 homes, making it the largest operational solar portfolio traded in the UK.

According to the companies, the acquisition agreement followed a competitive bidding process, managed by the joint administrators of Toucan Energy Holdings 1 Limited at Interpath Advisory.

Jim Tucker, Managing Director at Interpath Advisory and joint administrator of Toucan Energy Holdings 1 Limited, said:

“This was a highly competitive sales process, requiring substantial preparation, due in no small part to the fact that assets of this scale and quality rarely come to market. We look forward to the transaction completing in the coming weeks.”

The majority of the portfolio will be acquired by long-standing Schroders Greencoat managed funds, including Greencoat Solar II LP and Greencoat Renewable Income LP, as well as recently launched mandates. A significant portion is being acquired by six Local Government Pension Schemes, including Avon, Cornwall, Devon, Gloucestershire, Oxfordshire and Wiltshire Funds via Schroders Greencoat Wessex Gardens LP, a place-based and locally-focused renewable energy infrastructure fund established last year. Tokyo Century is acting as a co-investor in the acquisition.

Lee Moscovitch, Partner at Schroders Greencoat, said: 

“We are thrilled to have agreed to acquire the largest operational solar portfolio put to market in the UK. This is a major achievement for Schroders Greencoat, particularly given the size, complexity and number of stakeholders involved in the transaction. We will aim to deliver reliable returns for our investors via these assets, as they continue to provide a substantial contribution to the UK’s net zero strategy.”

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