CMS advises Luxcara on investment in solar projects in Denmark

Hamburg – Hamburg-based asset manager Luxcara has signed an investment agreement with Danish project developer BeGreen A/S on a solar portfolio with total a capacity of up to 415 MWp.

The agreement comprises four solar parks being built in Denmark. Luxcara will manage the portfolio on behalf of institutional investors. BeGreen will be responsible for the construction of the solar parks, as well as the operation and maintenance. The agreement is one of the largest photovoltaic transactions ever concluded in Europe. The parties agreed not to disclose the purchase price. The planned green electricity output of the four solar parks is equivalent to the annual consumption of 120,000 Danish households. The new solar parks will in total deliver carbon savings of 343,000 tons of CO2 equivalents (CO2e) annually.

A CMS team headed by lead partner Dr Holger Kraft and lead Principal Counsel Matthias Sethmann advised Luxcara on legal aspects of concluding the investment agreement. In particular, the advice included reviewing, revising and negotiating the construction, maintenance and management contracts.

Hamburg-based Luxcara is an independent asset manager that provides institutional investors with investment opportunities in the international renewable energy sector. Established in 2009, Luxcara acquires, structures, finances and operates renewable energy projects and related infrastructure as a long-term buy-and-hold investor. The company specialises in structuring power purchase agreements on the open market.

BeGreen specialises in the construction, development and management of large-scale solar parks and electricity storage solutions. The company operates primarily in Denmark, Sweden and Poland. BeGreen’s business strategy is to build solar parks without subsidies in partnership with local authorities, landowners, grid operators and investors.

CMS Germany

Dr Holger Kraft, Lead Partner
Matthias Sethmann, Lead Principal Counsel
Dr Constantin Lentz, Senior Associate, all Corporate/M&A
Dr Kerstin Block, Partner, Banking & Finance
Dr Hans Fabian Kiderlen, Counsel, Real Estate & Public

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