A South African alternative investment manager has announced the successful close of its R300 million inaugural tax-enhanced renewable energy alternatives investment strategy.
The fund manager, Westbrooke Alternative Asset Management, achieved its target by raising money from private investors in just eight weeks, and said in a statement it would now invest the capital alongside South African businesses that install, operate and own small and medium-scale embedded generation solar photovoltaic (PV) projects nationally.
Dino Zuccollo, the head of product development and distribution at Westbrooke Alternative Asset Management, said, “Westbrooke REAL allows investors to access the much-needed and fast-growing renewable energy sector, through a diversified portfolio of solar PV projects underpinned by long-term cash flows, through power purchase agreements concluded with high-quality end-users.”
To attract investment, the Minister of Finance expanded the Section 12B tax incentive to enable investors to claim up to a 125% up-front tax deduction for all renewable energy projects brought into use for the first time between March, 1, 2023 and February, 28, 2025.
Jonti Osher, the head of the South African investment team at Westbrooke Alternative Asset Management, said: “The objective of the Westbrooke REAL fund is to invest the capital in various solar PV energy projects, alongside reputable and experienced partners to unlock and accelerate the roll out of these projects.“
The fund will invest in renewable energy projects such as South African small-scale and medium-scale embedded generation projects, which are either grid-tied or in a hybrid system (batteries / generators). This will range from project sizes of 100KW up to 25MW with the ability to invest in larger projects
It also plans to invest in existing and greenfield solar projects, among other projects.
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