Canadian Solar sells 60-MWs of solar to Fengate Real Estate for $195 million

Written By: Stratton Report
February 6, 2017

Canadian Solar pv project

On February 6, Canadian Solar Inc. announced that it had completed the sale of a portfolio of three utility-scale solar farm holding companies to Fengate SSM Holdco LP, an affiliate of Fengate Real Asset Investments for over CAD 257 million ($195.32 million). Per the solar firm, Fengate will take over the outstanding debt from Norddeutsche Landesbank Girozentrale and Canadian Solar will provide operations and maintenance services and asset management services.

Per Canadian Solar, the SSM portfolio of companies included SSM 1 Solar ULC, SSM 2 Solar ULC, and SSM 3 Solar ULC, with total capacity of 59.8-MWs AC. The SSM Portfolio is located in Sault Ste. Marie, Ontario, Canada.

The transaction was closed on February 1, 2017 and Canadian Solar expects to recognize the transaction in the income statement for the first quarter of 2017.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, commented:

We are delighted to announce the successful sale of 3 additional solar power plants. 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. 

George Theodoropoulos, Fengate’s Managing Director of Infrastructure for North America noted: “The Sault St. Marie solar portfolio is fully-contracted with a strong operating record. 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.”