GUELPH, ON., May 2nd, 2019 /PVBUZZ MEDIA/– Skyline Clean Energy Fund (“SCEF”), an open-ended investment trust currently invested in large-scale, energy-producing projects across Ontario, is pleased to announce the acquisition of a 49 percent controlling stake of 6 FIT rooftop solar assets in CK Solar Projects LP, located in Ontario, from Panasonic Eco Solutions Canada Inc. The acquisition was completed on April 23, 2019.
The size of the acquired assets under this portfolio comes up to 1.419 MWDC (megawatts of DC power), and all six assets are backed by FIT program contracts with a remaining 16.9-year term.
The portfolio, which is expected to generate over 1,500-megawatt hours (MWh) annually with over $500,000 CAD of annual revenue—is located in two main areas, with three projects in Listowel, and the remaining three projects located in Eastern Ontario towards Ottawa. These projects have the potential to earn over $8 Million CAD in revenues over the remaining lifetime of the contracts.
“We believe this Portfolio will be a great addition as it adds a significant source of income to the fund,” said Rob Stein, President, Skyline Energy. “With the assets grouped in two main areas, we can really cut down on our costs to operate and maintain the sites.”
The assets have been neglected for the past two years and are in need of general repairs, which was reflected in the discount on the purchase price. Skyline will use their solar expertise to help fix up these assets and realize the upside potential they initially saw in the Portfolio.
“We purchased this Portfolio knowing the amount of work that needed to be done,” added Matt Kennedy, Acquisition Associate. “While our competitors shied away from getting their hands dirty, we saw this as an opportunity to not only add significant size to the current portfolio but to showcase the value-add that Skyline Energy brings to investors.”
Skyline Clean Energy Asset Management Inc., (“Skyline Energy” or the “Asset Manager”) provides the asset management, advisory and administrative services to the Skyline Clean Energy Fund. The Asset Manager is responsible for providing advice with respect to Business Targets and Target Assets. The officers and directors of the Asset Manager include individuals who collectively have over thirty-five years of experience in investing in private enterprises.
Increasing Skyline Clean Energy Fund's total asset size by more than 16 percent (in terms of MWDC), this acquisition is a significant addition to the overall portfolio asset size which now stands at 10.038 MWDC, with 11,294 MWh of annual generation capacity, which would earn SCEF over $3.7 Million CAD of annual revenues.
About Skyline Clean Energy Fund
Skyline Clean Energy Fund (SCEF) is an equity investment fund comprised of renewable energy-producing assets backed by long-term power purchase contracts. The Fund is targeting both stabilized and distressed assets offering accretive returns generated through stable cash flows in strong energy markets. The Fund’s Asset Manager aims to implement margin enhancement initiatives, manage system performance and improve system optimization to increase cash flows. By maximizing the performance, each asset increases in value leading to equity growth and the acquisition of new assets.
Formed in 2018, the Skyline Clean Energy Fund operates under the Skyline Group of Companies, a Guelph, ON-based real estate acquisitions, management, and investment firm. The Fund is currently open to investment from accredited investors. It targets a 7.5% annual growth rate on investments, and investments are eligible to registered accounts (RRSP, TFSA, RRIF, etc.).