Northleaf Capital Partners Sells Majority Stake in Mula Solar Farm to China Three Gorges

Northleaf Divests Majority Interest in One of Europe’s Largest Solar Plants

Northleaf Capital Partners, a global private markets investment firm, has announced the sale of its majority interest in Mula Solar, a 494 MWp solar photovoltaic plant located in Murcia, Spain. The transaction was carried out alongside Qualitas Energy, a minority partner, and marks a successful exit for Northleaf, which acquired a controlling stake in Mula in 2018. This divestment reflects the completion of the firm’s value creation strategy for the asset, with the sale to China Three Gorges (Spain), S.L.U., a subsidiary of China’s prominent clean energy giant, China Three Gorges Corporation, expected to generate substantial returns for its investors.

Mula Solar is one of Europe’s largest operational solar power plants, well known for its high-performance capacity and robust financial structure. The plant benefits from favorable solar conditions in Spain, which provides high solar irradiation levels, and is situated within a well-established transmission network. Furthermore, Mula’s long-term power purchase agreement with an investment-grade counterparty has bolstered its financial stability, making it an attractive asset for investors focused on renewable energy.

Northleaf’s Strategy and Mula’s Impact on Clean Energy Market

The sale of Mula Solar represents a significant milestone for Northleaf, which has strategically invested in the development, construction, and optimization of renewable energy infrastructure. According to Roderick Gadsby, Managing Director & Head of European Infrastructure at Northleaf, the firm has consistently focused on mid-market infrastructure assets that offer stable cash flows, strong yield, and a linkage to inflation. Northleaf’s structured approach to sourcing, growing, and de-risking these assets has been key to delivering solid returns for investors, even amidst fluctuating market conditions. The sale of Mula also underscores Northleaf’s commitment to supporting the global shift towards cleaner energy, further enhancing its reputation in the renewable energy sector.

Advisors and Transaction Details

The transaction is set to close in early 2025, with Northleaf receiving advisory support from financial advisors Société Générale, legal advisors Watson Farley & Williams, accounting and tax advisors E&Y, and technical advisors DNV. This partnership has facilitated a smooth and efficient sale process, contributing to the overall success of the transaction.