Bluefield Solar Income Fund (BSIF) Limited has announced today that it has entered into binding contracts to acquire a large-scale solar plant in Norfolk for total investment consideration of £17 million.

The agricultural site located near Hardingham will be one of the largest in the region. The plant, expected to commence electricity generation during December 2013, has been developed, and is being constructed, by Solarcentury, one of the leading specialist UK solar contractors.

Following the sale of the project, under the terms of the contract, Solarcentury will warrant the performance of the plant for an initial period and will undertake the ongoing operation and maintenance of the plant under a separate agreement.

The investment has been made without debt financing and the expected returns on this investment are in line with those anticipated in the Fund's investment objective as set out in its prospectus dated 25 June 2013.

Mike Rand, a managing partner at Bluefield Partners LLP, BSIF's Investment Adviser, said:

"Bluefield is delighted to announce its decision to allocate funds to this large scale project. The project was selected by Bluefield due to the exceptional track record of Solarcentury as a leader in the UK solar market. The project represents a first step in a growing partnership with the contractor"

Frans van den Heuvel, CEO of Solarcentury commented:

"Solarcentury has been one of the leading solar contractors in the UK for a number of years. We are delighted, therefore, with the relationship with BSIF, which has taken a pre-eminent position in the UK solar market by being the first institutionally backed solar focused fund. We hope this will be first of a number of large scale acquisitions of Solarcentury built plants by BSIF".

The £130 million Bluefield Solar Income Fund started trading in July 2012 at the London Stock Exchange following an initial public offering (IPO) which raised comfortably more than the £75 million minimum target.

The fund announced on 19 Aug. that it has acquired a large-scale solar plant in Oxfordshire for a total investment consideration of £12 million.

Source: BSIF