Bluefield Solar Income Fund Ltd on Monday said it is ready to execute the second phase of a strategic partnership with GLIL Infrastructure LLP.

The London-based fund is focused on solar investments with a portfolio of more than 200 operational assets across the UK.

In December, Bluefield Solar and GLIL entered a long-term strategic partnership focused on future investments in solar assets.

The agreement comprises three phases.

In phase one, the partners agreed to acquire the 247 megawatt UK-based solar portfolio from Lightsource bp, with Bluefield Solar investing £20 million.

GLIL, a group of UK pension funds investing in core UK infrastructure, contributed £200 million towards the transaction which was completed in January.

On Monday, it was confirmed that phase two has commenced which will see Bluefield Solar sell GLIL a 50% stake in a 112 MW portfolio of UK solar assets.

Approval for the sale under the Planning Act 2008 for nationally significant infrastructure projects is expected in mid-August.

Bluefield Solar Chair John Scott said: ‘The cash proceeds of c£70 million will be used prudently to reduce the company’s leverage while also enabling the company to commit further capital to BSIF’s significant proprietary development pipeline.’

Bluefield Solar previously confirmed it would repay £10 million of the company’s credit facility to reduce its balance to £167 million.

Following the execution of phase two, the partners will now commit capital toward a selection of Bluefield Solar’s development pipeline, as long as market conditions remain supportive.

The identified development assets in phase three were said to be grid-connected over the next two to three years.

However, on Monday Bluefield Solar said that 17MW peak of development assets identified in Auction Round 4 Contracts for Difference will be grid-connected within twelve months.

Bluefield Solar shares were down 0.6% at 107.60 pence each in London early on Monday afternoon.

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