Altus Power Inc. has entered a definitive agreement to acquire approximately 220 MW of newly developed and in construction solar assets for approximately $293 million from funds managed by True Green Capital Management LLC (TGC). Altus Power and TGC currently expect the transaction will close during first quarter of 2023 upon satisfaction of certain closing conditions. The company intends to fund the transaction with its long-term funding facility led by Blackstone Structured Finance and cash on hand.
“We are excited to welcome this new set of customers to the Altus Power brand, deepening our reach, particularly in New York and California, where a majority of the assets in this portfolio were developed and constructed by our partner, TGC,” says Gregg Felton, co-CEO of Altus Power. “TGC has a long history of successfully investing in commercial-scale solar with underwriting standards consistent with our own. Altus Power’s strengths in asset on-boarding and long-term customer servicing combined with our scalable funding architecture create a natural partnership.”
“Altus Power’s capacity to execute with efficiency and focus on building long-term relationships has made them an extremely valuable partner in both of our transactions,” states Panos Ninios, managing partner and co-founder of TGC. “They share our founding belief that commercial-scale distributed solar generation is the most attractive segment of our industry. Our collaboration has facilitated TGC’s successful forays into new solar markets.”
The acquired portfolio, once closed, will promptly add approximately 207 MW of commercial-scale solar assets to Altus Power’s operations, with the remaining 13 MW in the final stages of construction and expected to be completed in the coming months. This portfolio offers additional scale in Altus Power’s existing markets including California, Colorado, Illinois, Massachusetts, New Jersey and New York, and provides entry into two new markets of Delaware and South Carolina.
“We are pleased to expand our long-standing strategic partnership with Altus Power as it continues to meet the growing demand for low cost, renewable energy across the country,” adds Robert Camacho, co-head of asset-based finance within Blackstone’s Structured Finance Group. “Our investment-grade rated long-term funding facility provides Altus Power with competitive financing in this rapidly growing market.”
Altus Power expects to own, operate and service these new assets and new customer relationships over the long-term with the potential to offer additional electrification solutions, including battery storage, as well as electric vehicle or fleet charging stations.