Fotowatio acquires solar biz from MMA

Madrid-based solar power project developer Fotowatio said it has acquired the U.S. solar business of San Francisco-based MMA Renewable Ventures, adding to its holdings 35 MW of completed projects and 400 MW of projects under development.

MMA Renewable Ventures is a wholly owned subsidiary of Municipal Mortgage & Equity (MuniMae) (OTC:MMAB). The deal, which does not include MMA's Solar Funds I and II, is valued at $19.7 million.

MuniMae's shares were down 20 percent in morning trading to $0.18.

MMA invested $115 million in solar projects in 2008, down from $234 million in 2007.

"Because of the difficulty raising capital in the current market environment our renewable energy production has been decreasing," said MuniMae CEO Michael Falcone in a news release. "The capital needs of the business, coupled with our need to address corporate liquidity concerns make this a prudent time to sell the business."

Fotowatio's U.S. subsidiary, Fotowatio Renewable Ventures, is expected to hold two closings on MMA's employees and projects, including the 14 MW Nellis Air Force base installation in Nevada (see Nellis Air Force Base solar installation in pictures), the solar array at Denver International Airport, the CIGS thin-film installation in Arizona, solar panels on Colorado parking garages, and a solar project powering a rice farm in California.

In October, MMA formed a joint venture with Wuxi, China-based solar products maker Suntech Power Holdings (NYSE: STP) to develop, finance, own and operate large-scale photovoltaic projects in the U.S. (see Suntech looks to triple U.S. 2009 sales).

MuniMae and its subsidiaries arrange debt and equity financing for developers and owners of real estate and clean energy projects. As of September 2008, MuniMae had $20.4 billion under management.

With the acquisition, Fotowatio Renewable Ventures is expected to become one of the largest solar development companies in the United States in terms of megawatts in operation.The company plans to build only commercial- and utility-scale solar projects in the U.S.

"This acquisition will significantly expand Fotowatio’s portfolio, allowing us to meet our aggressive growth targets earlier than anticipated," said Rafael Benjumea, CEO of Fotowatio, in a release. "We will be poised to expand in fast-growing markets in the United States, Spain and Italy."

Fotowatio has invested more than $880 million in solar projects since 2006 and plans to invest up to $3.2 billion by 2012 in Spain, Italy and the United States.

Fotowatio has made two other acquisitions in the solar space in the last seven months as it focuses on global growth. In January, Fotowatio acquired a 6.3 MW solar project in Spain from Solaria (see What economic slowdown?). In September 2008, Fotowatio acquired four solar PV plants generating 32 MW from GA Solar, a subsidiary of Corporación Gestamp (see Fotowatio buys four solar plants in Spain).

Fotowatio received a $350 million boost in funding from GE Energy Financial Services and Grupo Corporativo Landon in July 2008 (see GE pours more cash into cleantech).

Qualitas Venture Capital now holds a 33.5 percent stake, while GE Energy Financial Services holds 32 percent, Grupo Corporativo Landon holds 17.5 percent, and the management team holds 17 percent.

With the MMA acquisition, Fotowatio’s global portfolio includes more than 130 MW of operating solar projects in the United States and Spain, and more than 1,000 MW under development in the U.S., Spain and Italy.