Aquila European Renewables Income Fund (AERIF) has reached a sale and purchasing agreement to acquire 50 percent of the equity of Ourique, a Portuguese solar farm.

The London-listed investment company is aiming to diversify its technological solutions and strengthens its presence on the Iberian Peninsula. The latest agreement follows the acquisitions of other solar farms in the region, such as Benfica III and Albeniz.

Ourique began operations in December 2019. It is located in Alentejo, Portugal, and has an installed capacity of c.60 MWp. The solar farm saves approximately 17,035 tons of CO2 emissions per annum, and an estimated 511,046 tonnes over the lifetime of the project (100 percent interest basis).

Closing of the transaction is expected to occur in April 2021.

Upon completion of the acquisition, AERIF will have committed 92 percent of its capital raised to date in operating and construction assets across six European countries.

Commenting on today's announcement, Christine Brockwell, head of partnerships and portfolio management at the investment adviser, Aquila Capital, said: "Ourique is an excellent addition to AERIF's portfolio and will directly contribute to its dividend cover. With this investment, the Company has again proven its ability to allocate funds prudently, within a short time frame."

Ian Nolan, chairman, added: "We are pleased to announce that we have committed nearly all of the equity raised in October 2020 within five months. Ourique will contribute to reducing Europe's carbon footprint, and it further diversifies our technology mix."