|Industry Segment||Renewable Energy|
|Investment Type||Renewable energy development and indirect project ownership|
|Strategic partner||AE AMD|
|Status||Operational and developmental success|
LMSC entered into its first investment with Cape Town- based developer AE AMD, which had developed and invested in the Herbert and Greefspan solar photovoltaic plants successful in the first round of the REIPPP. This investment has successfully demonstrated our ability to partner with equity into successful developers capturing development fees and success fee payments as these projects close and progress towards operations. Recent discussions with secondary buyers of the completed projects also validate the exit pricing for renewables projects that are into their operations phase. As risks reduce sharply post-construction, secondary buyers are willing to accept lower returns for the longer term operations phase, offering earlier pioneering investors like the Sustainable Capital funds an enhanced return above that of the project as a whole.