African Investment Infrastructure Fund 2 (AIIF2), managed by African Infrastructure Investment Managers (AIIM), has sold its 14% stake in the 139MW Cookhouse wind farm and its 34% stake in 75MW Reisa solar PV plant, also known as Kathu, both in South Africa. Both stakes were sold to AIIM’s Infrastructure, Development, and Environmental Assets (Ideas) Managed Fund.
The Ideas Managed Fund is one of the largest private equity funds participating in South Africa’s renewable energy sector, having invested more than $500m. It has shareholdings in 27 projects across the four rounds of the country’s Renewable Energy Independent Power Producer Procurement programme (REIPPP).
Cookhouse and Reisa were selected in the first round and were the largest wind and solar projects in at the time. Both projects achieved financial close in 2012 and were commissioned in 2014.
“We are immensely proud to have played a role in these projects and believe the above-target returns achieved support our strategy of investing in first mover projects where we are able to take advantage of our experience across similar projects in the region”, AIIM investment director Paul Frankish said. “The exits mark a long involvement in these projects for AIIM, starting at the inception of the renewables market in South Africa. Through its holding period, the AIIM team led the project through a challenging construction period, oversaw the renegotiation of operation and maintenance agreements and established community trust and operations structures which have been used as a blueprint for the industry and resulted in long term investment in the projects’ host communities.”
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