Armstrong Asset Management expects to start investing in small-scale clean energy projects in Southeast Asia by the end of the year.
“We are looking at Malaysian and Thai solar projects and Indonesian mini-hydro,” said Andrew Affleck, a managing partner at Armstrong in Singapore. The fund expects to complete two deals by the end of 2012, investing as much as $24 million.
Malaysia and Thailand are among nations offering favorable project returns because of “generous” subsidies for renewable energy, Bloomberg New Energy Finance said in a February report. Typically, every megawatt of renewables requires $2 million to $2.5 million of investment to bring into operation, Affleck said in a phone interview last week.
“In Malaysia, we are working on a portfolio where over the next 18 months we would develop around 20 megawatts,” Affleck said. “In Thailand, we’re looking at multiple projects that over the next 24 months would generate in aggregate 100 megawatts of solar power.”
A gross return in excess of 20 percent is anticipated on the portfolio, according to the fund manager. It is planned they will be sold when they’ve built up enough scale to attract interest from trade buyers, such as utilities and insurance companies.
Armstrong said Aug. 10 that it had obtained $65 million in the first funding round. By July 2013, it expects to have reached its $150 million target.
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