Solar 21 Renewable Energy Ireland Ltd., a Dublin-based fund, bought an Italian solar park for about 13 million euros ($17 million) as investors seek to benefit from European support for the technology.
The purchase of the 3.5-megawatt Borgo Montello venture from Berlin-based Kokusai Europe GmbH, a unit of Japan’s Kokusai Kogyo Group, will contribute to the fund’s planned 8.5 percent annual return for pension and regular investors, the company said in a statement. The site is in Lazio, west central Italy.
Solar 21, planning to invest in 1 billion euros of assets, is seeking to benefit from efforts by European nations to spur renewable energy with premium prices under long-term contracts. Pension funds are looking for alternative assets as yields on bonds have fallen amid economic weakness. Solar 21 bought six Italian solar parks from AEG Power Solutions BV in August.
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