STANLIB Infrastructure Fund II has agreed to acquire a majority stake in the 258 MW Upington Solar Power complex from two Norwegian investors, Scatec and Norfund.

The transaction will see STANLIB Infrastructure Fund II acquiring a total equity stake of 60% in the solar complex, by acquiring a 42% equity stake from Scatec, and 18% from Norfund.

The transaction is subject to the customary approvals and is expected to close in the first half of 2023.

Upington Solar, a complex consisting of three 86MW solar PV projects, was a successful bidder under the fourth round of South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP).

It achieved commercial operation in 2020, with an estimated output of about 650 GWh a year. This is sufficient to power about 120 000 households and abate about 600 000 tons of CO₂ a year.

“We are delighted to have secured this investment,” said Greg Babaya, Head of Infrastructure Investments at STANLIB.

“It fits perfectly within our mandate to give investors exposure to diversified, stable and risk-appropriate returns. It also provides additional exposure to an asset class that is a strong tool to drive economic growth and makes a tangible difference to South African communities – particularly at a time when the country is suffering an acute shortage of power generation.”

Scatec will continue to provide operations and maintenance and asset management support to the Upington solar complex.

“We are very pleased with this transaction and are confident that STANLIB will be a solid owner of the asset going forward,” added Scatec CEO Terje Pilskog.

During its 10-year history, STANLIB Infrastructure Investments has invested in 27 assets and currently has around R11bn assets under management.

STANLIB Infrastructure Fund II has raised significant capital from South African pension funds since its first close in June 2020 and is actively pursuing further investment opportunities.

The Fund invests in a broad range of infrastructure-related investments, including renewable energy, digital infrastructure, transportation infrastructure and logistics.