Sentient Impact Group, a successor organisation to Melbourne's Impact Investment Group (IIG), is considering selling a small portfolio of solar assets, according to three sources familiar.
The Karratha Solar Farm in Western Australia and the Mount Majura and Williamsdale solar projects in the Australian Capital Territory, which are owned by Sentient's Solar Income Fund, are among those potentially up for sale, the sources said.
The fund has always focused on smaller solar assets and the assets have a collective capacity of around 20 MW, according to one of the sources.
In 2016, IIG reached an AUD 35m (USD 23.6m) first close on the Solar Income Fund. At the time, IIG planned to grow a AUD 100m solar portfolio. Half of that total was to have been provided by debt. The fund targeted a 10% per annum return. At that time, the solar fund already had exclusive rights to acquire AUD 60m of projects, which were under construction.
The platform targets 1 MW-30 MW projects, which are already built and are fully contracted with creditworthy counterparties. Since its target assets are smaller, the offtake contracts are typically with industrial users, rather than large electricity retailers.
In October 2021, Impact Investment Group spun Sentient out of IIG, along with the group's renewable energy investments, while IIG retained the real estate assets. IIG is owned by Small Giants, the family office of Danny Almagor and Berry Liberman.
Spokespeople and officials at Sentient Impact Group did not respond to messages seeking comment.