Proactive Investors - Schroders (LON:SDR) Greencoat has said it will buy a majority stake in Toucan Energy’s solar portfolio in a deal marking the largest-ever transaction of such assets in the UK.
Made up of 53 solar farms, the £700 million portfolio has a combined capacity of 513.5 megawatts - enough to power approximately 184,000 homes.
Funds managed by Schroders Greencoat, which is a subsidiary of Schroders PLC, will acquire the majority of the portfolio, the firm said on Thursday.
Six government pension schemes, including in Avon, Cornwall, Devon, Gloucestershire, Oxfordshire and Wiltshire, will also buy into the portfolio through Schroders’ funds.
“We are thrilled to have agreed to acquire the largest operational solar portfolio put to market in the UK,” partner Lee Moscovitch said.
“This is a major achievement for Schroders Greencoat, particularly given the size, complexity and number of stakeholders involved in the transaction.”
Bankruptcy-struck Thurrock Council in Essex also stands to benefit from the deal, according to reports, after previously borrowing to invest £650 million in Toucan solar projects over four years.
Thurrock Council had been the primary creditor of Toucan Energy Holdings, which fell into administration in November 2022.
The company’s solar assets were subsequently put up for sale, with Schroders saying on Thursday that the acquisition came after a competitive bidding process.
“This was a highly competitive sales process, requiring substantial preparation, due in no small part to the fact that assets of this scale and quality rarely come to market," Toucan Energy administrator Jim Tucker said.
"We look forward to the transaction completing in the coming weeks.”
Shares in Shroders climbed 0.9% to 420.60p.