Origin Energy has formally kicked off the sale of its Darling Downs Solar Farm, seeking an equity investor to chip in an estimated $50 million for the project.
Street Talk understands Origin has been in front of infrastructure funds and other solar investors in recent weeks, launching the deal and calling for indicative bids early next month.
The utility has presented a sale structure where it would retain up to a 20 per cent equity interest in the project, and sell the controlling stake to one or more investors who would be expected to contribute $30 million to $50 million equity.
As usual, revenue from the solar farm would be underpinned by a long term off-take agreement back to Origin, with the contract expected to stretch until at least 2030.
Origin told potential buyers that construction was to begin early this year and would be operational before June 30 next year. The project was designed with a 30-year life and big enough to provide electricity each year to power up to 32,000 homes.
Mid-market infrastructure fund managers Infrastructure Capital Group and DIF are understood to be in the process, along with Lighthouse Infrastructure which has a specialist solar investment fund.
Street Talk revealed Origin was testing market interest in the project in November. Bank of America Merrill Lynch is running the sale.
It's understood Origin has signed prospective buyers to confidentiality agreements and is seeking to have a deal completed by the end of May.
For Origin, the potential sale comes as it seeks to seal the final two divestments in a five-pronged asset sale program. The final two are the Stockyard Hill Windfarm development and three gas pipelines in the Darling Downs.
