Egypt’s Vortex Energy sells UK solar assets for US$644mn

6236145776 c5df240236 cVortex Energy, a subsidiary of EFG Hermes, has sold a controlling and managing stake in the UK solar portfolio to Malaysian utility TNB International for US$644mn

Vortex Energy, a global renewable energy platform managed by Beaufort Investments, has sold the Vortex Solar (Vortex III) assets, a 365MW solar PV portfolio acquired from TerraForm Power in 2017.

Vortex III is one of the largest stand-alone portfolios in the UK, with an average asset age of six years, PPAs with major European energy companies and utilities, an attractive ROC scheme and a long-term debt package from major lenders including Santander, RBS and ING.

Karim Moussa, head of private equity and asset management, at EFG Hermes, said, “The exit of Vortex III delivered a 1.5x cash on cash multiple to our investors and an IRR of c. 14%. We continue to demonstrate our ability to pursue the full cycle of raising capital, investing strategically and exiting major renewable energy portfolios.

“This is the second major exit following the disposal of our 49% stake in a 1GW wind portfolio to funds managed by J.P. Morgan last year.”

Bakr Abdel-Wahab, head of energy, at EFG Hermes Private Equity, said, “Since acquiring the UK assets, we have improved their performance and capital structure via a major refinancing; revamping all major portfolio agreements, partnering with Lightsource BP and establishing a strong London based asset management team.”

The Beaufort team is currently planning to set up Vortex IV, a renewable energy platform that will target global generation, storage, distribution and technology companies.

“We are excited about future global opportunities in renewables and the wider clean energy space, we shall aim to commence our fundraising efforts by the end of 2020, with anchor investors already showing an increased interest in our next endeavour Vortex IV,” Moussa concluded.

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