Gaia Renewables 1, a renewable energy investment fund listed on the Cape Town Stock Exchange, has officially completed the acquisition of equity stakes in two major solar photovoltaic (PV) plants located in South Africa’s Northern Cape province. The transaction follows the successful financial close last week, after receiving project lender consent and earlier approval from the Competition Commission in April.
The deal sees Gaia Renewables 1 acquiring a 10% equity interest in each of the Linde and Kalkbult solar PV facilities, both of which were developed under the South African government’s first round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). These projects were part of a national strategy to diversify the country’s energy mix and reduce dependence on aging coal-fired power infrastructure.
The seller in this transaction is the IDEAS Renewable Energy Fund, managed by African Infrastructure Investment Managers (AIIM), a leading infrastructure investment firm on the continent. The total value of the transaction exceeds R200 million (approximately $11.2 million).
To finance the acquisition, Gaia Renewables 1 utilized a combination of debt and equity funding. As part of its capital strategy, the fund will issue a tranche of preference shares to existing shareholders, with additional issuances planned over the next 12 months to support further acquisitions and portfolio expansion.
Hendrik Snyman, Chief Investment Officer of Gaia Fund Managers, commented:
Gaia is proud to take over the torch from AIIM. These pioneering renewable energy projects, built with a robust and low-risk approach, have demonstrated an excellent operational track record. We are confident they will continue to deliver inflation-linked returns to our investors. With Gaia’s expertise, we also see exciting opportunities to further optimise and enhance the use of these assets in the years ahead.
The Linde and Kalkbult plants are among South Africa’s earliest utility-scale solar projects and have consistently delivered reliable, clean energy to the national grid. Their inclusion in Gaia’s portfolio marks a strategic step in the fund’s mission to support the country’s energy transition while delivering stable, long-term returns to investors.
