Deutsche Asset Management mulls renewables sale

IJGlobal can exclusively reveal that Deutsche Asset Management has appointed an adviser to approach the market for a potential sale of a renewables investment.

Deutsche AM is likely in September to test the market for its stake in the recently refinanced Andasol 1 and 2 thermal solar plants in Spain.

Deutsche AM’s Pan-European Infrastructure Fund 1 (formerly known as RREEF Infrastructure fund) owns 45%, while French fund manager Antin Infrastructure Partners holds 45% and Spanish construction firm ACS Group has 10%. Deutsche AM and Antin invested in Andasol during 2011.

Mediobanca is mandated as adviser and is putting together data on the assets currently. A source said Deutsche AM is not under particular pressure to sell.

The two concentrated solar plants, each with 50MW capacity, are located near Granada at a high altitude of 1,100 metres. They entered operations in 2008 and 2009.

In June 2016 Andasol 1 and 2’s €316 million debt ($354 million) refinancing increased the average life of the loans to 2030, and new debt came from BNP Paribas, Rivage and Banco Sabadell. The debt service coverage ratio is 1.5x.

In July 2013 the Spanish government announced it would replace feed in tariffs with a new system based on government-set operational and investment returns, sparking anger from investors.

The Spanish government set the cap for renewable generator returns in June 2014 at close to 7.5% for a project, though the rate is revised every three years. The rate is based on the average interest of a 10-year sovereign bond plus three percentage points.

Deutsche AM’s €2 billion Pan European Infrastructure Fund launched in 2006 and is due to mature in 2020, which would include an exercise of its four-year extension option. The fund sold German motorway service station company Autobahn Tank & Rast last year for €3.9 billion.

Pan-European Infrastructure Fund 2 has been in fundraising since June 2015 and final close is likely later in the year. The target is €2 billion. Already the fund has invested in airport ground handling equipment company TCR and continental European rolling stock company Akiem, rendering it about 25% invested.

Asset SnapshotAndaSol II Solar Thermal Plant (50MW)

Est. Value:
USD 402.60m
Full Details

Asset SnapshotAndaSol I Solar Thermal Plant (50MW)

Est. Value:
USD 351.44m
Full Details

Transaction SnapshotAcquisition of AndaSol I (50MW) and Andasol II (50MW) Solar Thermal Plants

Financial Close:
Full Details