In a transaction worth more than R200-million, Gaia Renewables 1, listed on the Cape Town Stock Exchange (CTSE), has officially acquired stakes in two renewable energy plants.
The transaction includes the sale of what is arguably South Africa’s first solar IPP (independent power producer).
The deal, initially funded with debt and equity, will see the fund gaining a 10% holding in each of the Linde and Kalkbult solar photovoltaic plants in the Northern Cape
The seller is the IDEAS Renewable Energy Fund which is managed by African Infrastructure Investment Managers (AIIM).
The fund will issue a batch of preference shares to existing shareholders with additional issuances to follow over the next 12 months to fund additional transactions.
Gaia Fund Managers has concluded 16 renewable energy transactions on behalf of investors with Gaia Renewables 1 already, including a 16% stake in the Tsitsikamma Community Wind Farm in the Eastern Cape.
The two new renewable assets were constructed during the government’s first round of allocations in the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) in a bid to relieve the country of its reliance on aged coal-fired power plants.
Dr Hendrik Snyman, chief investment officer of Gaia Fund Managers, says: “Gaia is proud to take over the torch from AIIM. These pioneering renewable energy projects, built with a robust and low-risk approach, have demonstrated an excellent operational track record and we are confident they will continue to deliver inflation-linked returns to our investors. With Gaia’s expertise, we also see exciting opportunities to further optimise and enhance the use of these assets in the years ahead.”
The Competition Commission approved the acquisition in April of this year.