Tages Capital SGR has completed the first closing of Tages Helios II, its second closed-end alternative real estate fund, investing in the renewable energy sector.
Tages Helios is now the second largest player in the PV sector in Italy, with 95 photovoltaic (PV) plants and a total power capacity of 208 megawatts (MW). The second Tages Helios Fund is targeting a total fund-raise of €400 million ($463 million) with the objective to replicate the success of the first Tages Helios fund. In addition to its primary focus on Italian PV, the new fund is also able to invest in wind farms.
In the photovoltaic sector, the fund will acquire a network of plants that have been established over the last five to six years. It will actively manage these assets with the support of Delos Group, targeting an increase in efficiency both in operational and industrial terms, as well as in financial terms through debt refinancing.
The plants’ management will be entrusted to Delos Power S.r.l. which has itself been specifically incorporated for this purpose. Delos Power is the result of a partnership signed between Tages Helios and Renam S.r.l, a core market participant in the sector of electricity generation from renewable sources, operating more than 300 MW.
At its first closing, Tages Helios II attracted the interest of many large institutional investors who also participated to the first fund. Commitments from investors such as of Aviva, Intesa San Paolo, Poste Vita, Reale Mutua Assicurazioni and UnipolSai Assicurazioni, illustrate the attractiveness of Tages Helios II to long-term investors such as insurance companies and pension funds.
In line with the previous fund, Tages Helios II will make semi-annual distributions of the income generated by the Fund. This will ensure full amortization of the invested assets by the expiry date of the Italian government fiscal incentives.
Umberto Quadrino, chairman of Tages Holding, said, “Following the success of Tages Helios I, we are pleased with the launch of this second Fund in the Helios fund family. The success of this new venture proves the continuing interest of institutional investors in renewable energy, particularly in the PV sector. We still see plenty of consolidation opportunities in the Italian market, where only the largest players can drive efficiencies, a critical component for returns in the PV sector. We are grateful to those Tages Helios’ investors who have decided to renew their commitment by subscribing to Helios II, and remain confident of further demand over the coming months.”
