Deal: Subject to certain conditions, New Energy Solar will acquire a 49 per cent interest in the Beryl solar project following construction commencing. Following completion, which has been slated for mid-2019, New Energy Solar will acquire the remaining 51 per cent.

Value: $187 million

Area: M&A, energy and resources

Key players: The Herbert Smith Freehills legal team was led by partner David Ryan, with assistance from senior associate Natalie McDowell and lawyer Michael Trent. 

Deal significance: The Beryl solar project has a 15-year power purchase agreement for approximately 134,000 MWh of electricity per annum with Transport for NSW to meet the electricity requirements of the Sydney Metro Northwest railway, according to a statement from HSF.

New Energy Solar’s acquisition of the Beryl solar project comes after it acquired its first Australian asset, the Manildra solar farm, also from First Solar Inc.

“Beryl is an ideal project for our second Australian acquisition, and we are very pleased to have added a project of this scale and quality so soon after Manildra,” said New Energy Solar head of investments Liam Thomas.

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“Once completed, approximately 20 per cent of New Energy Solar’s portfolio will be in Australia. The project provides stable A$ cashflow under the long-term PPA with TfNSW. The PPA structure, under which the majority of the offtake is contracted, is consistent with our strategy to secure predictable, low-risk returns for investors.

“At the same time, the uncontracted volume allows us to explore other PPA arrangements, battery storage and other value-enhancing options.”