THE SOLARION RENEWABLE FUND
The upcoming retirement of ageing coal generation power plants, a notable shift in public sentiment, and declining renewable generation costs provide a positive impetus for investment in renewable energy.
Medium-scale solar projects have historically been overlooked as investors gravitated towards large-scale solar projects. But with those larger projects now facing considerable risks – particularly in relation to grid connection, capacity constraints, commissioning delays and large decreases in MLFs – medium-scale solar projects have become increasingly attractive as they avoid many of these pitfalls plus they are quick to develop and construct, highly scalable, and still generate strong economies of scale.
The Solarion Renewable Fund is seeking to fill the gap in medium-scale solar projects and aims to become the leader in this asset class in Australia, providing investors with the opportunity to make a positive, meaningful impact on the environment and receive attractive, regular income from assets that have a low correlation to the economy and market conditions.
A unique opportunity to invest via the Fund in your chosen medium-scale solar asset that aims to deliver:
- meaningful benefits to the environment and local communities;
- attractive, regular quarterly distributions that have a low correlation to market and economic conditions; and
- an expected final distribution following the sale of the Fund’s preference shares at the end of the target investment term
Through the Solarion Renewable Fund, Investors have the opportunity to invest into their chosen solar project through each of the individual Investment Options which target 5-year average returns between 4-6% per annum (net of all fees and expenses) plus a final expected distribution of up to 5% at the end of the Target Investment Term.
The Fund is initially offering an investment in five solar assets all located in South Australia and 5 MW in size.
Reason to Invest
Key reasons why investors may find this an attractive investment opportunity.
The Fund is targeting average 5-year returns for each Investment Option of between 4-6% (pre-tax, after fees and expenses) with low correlation to market and economic conditions, plus a 5% premium on the invested capital at the end of the Target Investment Term. This is a target return only and not a forecast.
Renewable energy equity, secured through long term contracts, has stable and resilient cashflows that can provide a higher return than is expected from other investment sources, such as corporate bonds.
With no more than a 10% up-front commitment held in cash in the Fund, Investors’ capital will only be invested and further called upon to fund fully constructed and operational solar farms.
The Fund gives Qualifying Investors the opportunity to gain exposure to their chosen solar Project.
Investors can then monitor the real-time performance of these assets through Solarion’s online platform.
Medium-scale solar farms are expected to play a major role in Australia’s energy transition. They are quick to develop and construct, are highly scalable and generate economies of scale, avoid many of the grid connection risks, and can be located closer to electricity consumers.
The Investment Manager’s team includes renewable energy industry experts with experience delivering solar projects across several continents.
KEY FUND DETAILS
|Structure||Unregistered managed investment scheme|
|Target average 5-year returns||between 4-6% per annum (net of all fees and expenses). This is a target return only and not a forecast|
|Trustee||Vasco Custodians Pty Ltd (ACN 644 232 539)|
|Investment Manager||Solarion Investment Pty Ltd (ACN 624 422 788)|
|Target fund size||$40 million|
|Investor eligibility||All Unit holders must be wholesale clients as that term is defined under section 761G of the Corporations Act 2001 (Cth)|