GLIL Infrastructure, a UK-based infrastructure fund backed by LGPS pools and DC master trust Nest has entered a strategic partnership with the London-listed Bluefield Solar Income Fund.
The two investors have formed a strategic partnership, as part of a commitment to drive investments in UK-focussed solar energy assets in 2024.
As part of the agreement, GLIL is set to invest £200 million in a 247MW portfolio of operational solar energy assets. It will also acquire a 50% stake in a separate 100MW portfolio of solar assets and it will allocate fresh funds for Bluefield Solar’s development pipeline.
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Phased approach
The strategic partnership will evolve in three distinct phases. During the first phase, the agreement sees GLIL and Bluefield Solar will acquire a portfolio of 58 operational UK projects from Lightsource bp, which is specialised in the development and management of solar energy projects.
The 247MW projects, developed by Lightsource bp from 2011, are predominantly located across southern and central England and include 184MW backed by subsidies and two subsidy-free projects with a total capacity of 48MW.
The deal will see GLIL invest £200 million, and Bluefield Solar commit £20 million.
The companies stressed the transactions still require approval under the UK Planning Act for Nationally Significant Infrastructure Projects but the process is expected to be completed early this year.
As part of the second phase of the partnership, GLIL will acquire a 50% stake in a separate portfolio of around 100MW of operational UK solar energy assets currently owned by Bluefield Solar. The companies said they are working to complete the deal in the first half of 2024.
Finally, GLIL and Bluefield Solar agreed to commit to funding a selection of the Bluefield Solar’s development pipeline, which are expected to be grid-connected over the next two to three years.
"The investment in the Lightsource bp portfolio will further diversify the fund's renewable energy portfolio," said Julia Carter, deputy portfolio manager at GLIL Infrastructure.
"This acquisition enables GLIL to access a substantial portfolio of operational solar energy assets as well as a maturing development pipeline" she added.
