Northleaf Capital Partners, a global private markets investment firm, has announced the divestment of its majority stake in NCP Mula Solar (Spain), S.L., owner of the 494 MWp solar photovoltaic plant located in Murcia, Spain. This strategic exit marks the completion of Northleaf’s value creation plan for the Mula project and will generate significant cash proceeds for its investors.
Northleaf and its minority partner, Qualitas Energy, jointly sold Mula to China Three Gorges (Spain), S.L.U., a subsidiary of China Three Gorges Corporation, one of China’s top clean energy groups. The deal represents a successful outcome for Northleaf’s strategy in the renewable energy sector.
Mula: A Major Asset in Europe’s Solar Landscape
Mula ranks as one of the largest solar plants in operations in Europe that enjoys high irradiation levels of solar, high transmission capacity with a potential development of future capacity for renewable generation. Long term pay-as produced power purchase from an investment grade counterparty and financing from top-tier banks will guarantee its financials.
The predictability and reliability of cash flows were also significant attractions for Northleaf to the plant, which acquired controlling interest in Mula in 2018. Northleaf played a key role in the plant’s construction and optimization, before deciding to exit via a structured sale process launched in late 2023.
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Northleaf’s Approach: Mid-Market Infrastructure Focus
Roderick Gadsby, Managing Director & Head of European Infrastructure at Northleaf, said, “Northleaf’s successful sale of Mula underscores our ability to consistently deliver value by focusing on mid-market infrastructure assets with stable cashflow, strong yield and inflation linkage.”
He added, “Our approach to bilaterally sourcing, prudently growing, de-risking, and opportunistically exiting core infrastructure assets is how we achieve attractive returns for our investors across market cycles.”
The transaction will close in early 2025, finalizing the sale of the majority interest in Mula to China Three Gorges. Additionally, Northleaf was advised on the deal by Société Générale, Watson Farley & Williams , E&Y, and DNV.