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Secure your land’s future

Specializing in acquiring solar farm land

ABOUT

One of the largest renewable energy landlords worldwide

SOL-R Global Infrastructure specializes in acquiring land that is rented to renewable energy operators.

We are the landlord of renewable energy operators.

We do not operate renewable energy operations ourselves.

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Benefits

Why should I sell my land?

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Liquidity

Turn your illiquid asset into cash without waiting 25-30 years

Eligibility Checklist

Who should consider selling to us?

If your property meets these criteria, you’re a perfect fit for our investment program.

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Land Under Development

Land plots in excess of 3 hectares for a which a solar farm project is currently being developed.

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Land Under Construction

Land plots in excess of 3 hectares on which a solar farm is currently being built.

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Land With an Operating Farm

Land plots in excess of 3 hectares upon which a solar farm has already been built and which is currently paying you rent.

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Liquidity for Landowners, Delivered Quickly

We operate in 9 countries in Europe where we actively assist owners achieve liquidity for their landholding at attractive valuations.

From start to finish, we tend to close a typical transaction in under 4 months.

The landowners we have worked with have described us as being “proactive”, “pragmatic” and “highly professional”.

Carlo Toic

Chief Operating Officer

land valuation

Factors used to value the land

(1)
Rent
The rent paid by the tenant
(2)
Rent Escalation
Mechanism by which rent is escalated yearly
(3)
Lease Term
The remaining duration of the lease

Comparison

How does the valuation of solar farm land compare to other property categories?

Capitalization rate

A property which generates rental income is usually valued on what is called a capitalization rate.

A capitalization rate is a percentage that tells you how much money a property makes in a
year compared to its price.

For example, if a building is valued €1,000,000 and generates rental income of €100,000, its capitalization rate is:

€100,000 / €1,000,000 = 10%

How does an investor compare properties?

Investors use capitalization rates to compare property categories or properties. For the same rental income, the lower the capitalization rate, the higher the value of the property.

What factors do investors take into account to set the capitalization rate for a property category?

• Scarcity of the property type
• Financial stability of the property’s tenant
• Complexity of property management
• Requirement for property maintenance
• Property owner’s ability to get a mortgage
• Property owner’s ability to resell the property
• Ease of replacing the tenant
• Alternative use for the property

Questionnaire

After evaluating your file, our acquisition manager will get in touch with you.

(1)

Response

After evaluating your file, our acquisition manager will get in touch with you.

02

Preliminary offer

After evaluating your file, our acquisition manager will get in touch with you.

03

FUTURE

What are the next steps?

CONTACT

Get in touch with us

How did your hear from us?

FREQUENTLY ASKED QUESTIONS

I need to learn more

  • Why are you interested in buying solar ground sites?
    SOL-R Global Infrastructure is building a portfolio of land assets across many countries and rented to many different energy operators. This enables us to create an institutional-sized investment vehicle where the regulatory, technical and environmental risks are diversified away.
  • Do you operate solar farms yourselves?
    SOL-R Global Infrastructure does not operate solar farms. We are the landlords of solar farms. The solar farm operators are our tenants and we do not compete against our tenants.
  • What will you do with the land once acquired?
    SOL-R Global Infrastructure is a passive real-estate investor. We do not interfere with the solar farm operator’s energy-producing operations. If improvements are required to be made on the land, the solar farm operator funds these works himself.
  • At what price do you buy the land?
    SOL-R Global Infrastructure is a real estate investor which invests in the specific niche asset class of solar farm ground sites for yield. As such, the price we pay for land is mathematically calculated to get us our target yield. Although many parameters come into the equation, the rent paid by the solar farm is the most important one. But we also factor in acquisition costs, prevailing interest rates, the financial wherewithal of the tenant (or its parent company), the intrinsic value of the land should no solar farm be installed… etc.
  • What are advantages of selling vs keeping the land?
    Solar farm leases are for the very long term : they tend to be for durations in excess of 25 years with unilateral options to be benefit of the tenant to extend for 5 to 10 years. This means that any future use of the land by the owner is close to 35-45 years away. If you rent the land, the positive, on top of getting a yearly income, is that you get keep your property. We would argue that, by not being able to do anything with the land for the next 35-45 years, this is a very tenuous positive. The negative is very real : you are exposed to paying income tax on each year’s rental income at a marginal income tax rate that is usually superior to the capital gains tax. If you sell the land, the clear positive is that you immediately receive a large amount of money which will be taxed, if at all, at a capital gains tax rate that is almost always materially inferior to the income tax rate you would pay on rent. Additionally, your land is valued based on the rent that is paid by the solar farm tenant rather than based on its intrinsic worth (i.e. without a solar farm tenant). The negative is that the land is not yours anymore. Again, we would argue that is a very small negative because, renting the land (i.e. the alternative), also means not being able to do anything with the land for the next 35-45 years. The tax arbitrage of selling vs. renting is very compelling. Suppose (i) the rental income is €100,000 per year, which is taxed on average at 40%, (ii) the capital gains tax rate on the proceeds of a sale is 20% and (iii) SOL-R Global Infrastructure buys the land for €1m (with a historical acquisition cost of €100,000). In this case, the seller receives €1,000,000 – (20% x (€ 1,000,000 - €100,000)) = €820,000 in net proceeds. This represents almost 14 years of the net rental income of (1-40%) x €100,000 = €60,000 if he had chosen not to sell.
  • What happens if the solar farm ceases to operate after I have sold my land?
    If the solar farm operator cancels his lease once SOL-R Global Infrastructure has acquired the land, the former landowner is not impacted financially. You have no liability to SOL-R Global Infrastructure.
  • Do you invest in land hosting wind turbines?
    SOL-R Global Infrastructure invests solely in land hosting solar farms.
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Need more info?

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SEDE CENTRAL EUROPEA

The Black Church

St Mary's Place, Dublin 7

D07P4AX Ireland

TELÉFONO

+353 (0)1 568 6990

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