AIM-listed Braemar Group is to launch an investment fund to buy into six German solar parks, promising a yield of above 10% per year over the next 20 years.
The €90m fund will invest in parks with fixed contracts to supply electricity to German utility companies. The Hale-based fund manager said it has already secured the €90m in initial capital for the fund, which will be Guernsey listed, and will wholly own all generation equipment.
Braemar said $150bn was invested in solar and wind power projects in 2007, and 2008 levels are expected to exceed that according to the United Nations.
Marc Duschenes, chief executive of Braemar, said: "Germany is an ideal place for solar investment because it combines affordable land prices with premium prices for solar energy and technology. Since all the electricity is pre-sold to German utilities, we are able to offer double digit returns which make it a great investment. I have heard it said by some bankers that during the credit crunch, even sunshine is not certain. Well, so long as that is not the case, we have constructed a great product."
Minimum investment is £10,000 and the fund will be launched in late autumn 2008.