SolaREIT secured $100 millions of solar leases with Nuveen. This has become in the largest mid-sized and commercial solar land sector securitization made by a REIT.
SolaREIT made their investments on developing, and managing climate-friendly solar assets. They strongly support the low-carbon economy. By doing this they give a big step on the direction of accessing low-cost capital.
The Benefits this investment bring to the table
There are many benefits that will come because of the expansion. One of them is the increase access to low-cost capital in the commercial and mid-sized solar development sector. Other benefit will be the financing options such as “Pre-Paid Solar Land Lease”; because o this the landowners will receive solar lease payments immediately. Solar Developers and landowners will have financial flexibility and access to capital as result.
Gautam Chandra, Manaing Director of SolaREIT, stated; “We´re thriller to work with and complete this securitization led by Nuveen. Our solutions supported by Nuveen´s financing reduce the cost of solar and free-up developer capital to do more solar projects”. “This investment confirms the strong interest from the most progressive institutional investors in this sector” he said.
Also, Chris Miller, Managing Director at Nuveen declared “We are excited to create this investment program with the SolaREIT team. This is an important step to create flexibility and be a smart investment for the real state owners”.
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To full fill the Paris agreement is also necessary the solar and other clean energies transitions. This in monetary terms means $4 trillion investment per year by 2030. Is estimated that by the Renewable Energy Laboratory, that in 2030, solar panel will cover 3 million acres. Thanks to this investment landowners now will have the opportunity to monetize at better terms their land. Also the number of landowners open to this type of projects will increased.
The capital obtain from the solar industry usually is used by the land owners to expand their business or purchase additional farmland. With the increased financial flexibility for solar landowners and developers will reduces costs as a result.
