Abu Dhabi – Mubasher: Quercus Assets Selection said its subsidiary Quercus Renewable Energy (QRE) Fund has completed the sale of its stake in ForVEI.
ForVEI is a joint venture (JV) comprising Quercus Renewable Energy, VEI Capital, Foresight Solar VCT and Adenium Solar Energy.
Quercus invested AED 159.453 million (€8 million) in ForVEI in 2011, and owned a stake close to 10% in the JV at the time of its disposal late in December 2016.
The sale transaction generated an IRR of higher than 9% for Quercus.
The QRE fund seeks to exit investments within a 5-7-year investment period and it is intended that the fund will liquidate by the end of 2018.
The disposal of ForVEI follows news of the €150 million (AED 588.607 million) first close of a series of three renewable infrastructure funds that are seeking to raise a combined €500 million (AED 1.96 billion) by December 2018.
The three new funds are targeting an annual dividend yield of 6%, distributed semi-annually and an IRR above 11%.
