Everwood Capital once again enriches its clients, mainly private banking investors from Andbank and Santander. The fund manager focused on renewable energy has just sold its Desafío Solar plant, located in Escatrón (Zaragoza), to the Italian firm Falck Renewables. This plant, with a 50 MW capacity, has already been transferred in operation and sources in the sector estimate that more than 43 million euros would have been paid for it.
This represents a new returns milestone, which Everwood Capital places at more than 50% in two years. In other words, it achieved an annual IRR greater than 25%. With this operation, the fund manager led by Alfredo Fernández Agras and José Antonio Urquizu accomplishes the target returns of more than two digits for its Fund IV. Previously, Everwood Capital sold its Funds I, II and III with returns between 18% and 33%.
This time the fund manager decided not to wait to transact the entire Fund and preferred to divest this plant given the interest shown by the market. The process was structured as a competitive auction advised by PwC as coordinator of the process and Araoz y Rueda in the legal part. This process received 22 indications of interest and 11 offers, with Falck’s being the most satisfactory.
This solar plant has already a project finance, structured with Banco Sabadell. The asset receives its revenues from the wholesale market, which clears up certain doubts about the future pool prices, although it has a PPA with a remunerative floor for the plant that ensures its revenues.
In addition, the company warns its investors that it can still achieve higher returns for the rest of Fund IV investments, given that it is already installing bifacial panels (which are more efficient), the construction costs of the plants – the EPC – have been moderated compared to the pre-pandemic situation, and the solar resource of most projects is higher as they are located in the southern part of Spain, as opposed to Escatrón, which is in the northern part.
The principal of this operation will be reinvested in other plants and the capital gains will be distributed among the private banking investors of the Fund. While promoting, developing, constructing and connecting various photovoltaic plants throughout the national territory, Everwood Capital is already raising its Fund V, which has a target of 500 million euros. For now, it has already commitments for 100 million euros (20% of the target size), and once again the clients of Santander Private Banking and Andbank are among those interested.
Fund V has already acquired photovoltaic projects for a total of 1,096 MW in the central and southern areas of the Iberian Peninsula, representing more than 70% of the target size of the Fund. To carry out this operation, Everwood Capital acquired the portfolio from Prodiel, the renewable energy developer led by the president of Betis.