SolaREIT Closes on $100M Investment From CarVal
The solar real estate investment fund says up to $250 million in additional capital is possible.
SolaREIT announced that it initially closed on $100 million in investment funds from alternative investment manager CarVal. Up to $250 million in additional funding is potentially available to expand the company’s activities, the company says.
SolaREIT acquires, develops and manages climate-friendly real estate assets that support solar and battery storage projects, offering financing options to developers, project owners and landowners. Its products include land purchases, lease purchases and mortgage loans.
“Solar development is capital intensive, and we believe this investment will deliver innovative technologies and projects that are supporting the energy transition while offering solid, long-term return potential,” Jerry Keefe, principal with AB CarVal, said in prepared remarks. “This partnership with SolaREIT scales solar and battery storage growth by delivering a full suite of financing solutions for developers, project owners and landowners.”
Land acquisition uses purchase options from solar developers to free capital for other uses. Part of that can involve redirecting capital “to project components that are ITC eligible, maximizing tax efficiency.”
In a lease purchase, SolaREIT “prepays the value of the solar lease to the developer or third-party landowner in exchange for a lease assignment and an easement over the project area.”
With solar land loans, “SolaREIT offers the landowner a lump-sum payment against the value of the solar lease,” avoiding capital gains tax implications and leaving the landowner with fee simple interest in the property, according to the company.
“Developers and asset owners are facing a number of challenges in the current financial environment, and need access to capital and other financial solutions that are flexible and nimble,” Laura Pagliarulo, founder and president of SolaREIT, said in prepared remarks.