Canadian Solar completes sale of 3 Utility-Scale Solar Plants to Fengate

Canadian Solar announced it has sold the outstanding shares of 3 utility-scale solar farm holding companies in Ontario: SSM 1 Solar ULC, SSM 2 Solar ULC, and SSM 3 Solar ULC. The portfolio adds up to 59.8 MW AC, and was sold to to Fengate SSM Holdco LP, an affiliate of Fengate Real Asset Investments for over $195 million. The transaction was closed on February 1, 2017 and Canadian Solar expects to recognize the difference between the sales proceeds and the book value of the projects under ‘Other income (expenses)’ in the income statement for the first quarter of 2017.

“We are delighted to announce the successful sale of three additional solar power plants,” said Dr. Shawn Qu, chairman and CEO of Canadian Solar. “To this point, we have sold all of our operating plants of 100 MWdc in Canada, including the BeamLight and Alfred projects sold in December 2016. We value our partnership with Fengate and look forward to deepening our cooperation while we continue to monetize our solar power plants in other countries.”

The SSM Portfolio is located in Sault Ste. Marie, Ontario, Canada. As part of the deal, Fengate will take over the outstanding debt from Norddeutsche Landesbank Girozentrale and Canadian Solar will provide operations and maintenance services and asset management services.

“The Sault St. Marie solar portfolio is fully-contracted with a strong operating record,” said George Theodoropoulos, Fengate’s managing director of infrastructure for North America. “Fengate and its investors will benefit from this new relationship with Canadian Solar, an experienced and reputable developer and operator that has extensive knowledge of the solar industry.”

Source: Canadian Solar