Key Takeaways
- Sector: Energy Infrastructure & Renewables.
- Geography: Spain.
Analysis
KGAL Investment Management has acquired a 60.5 MWp solar park in Andalusia, Spain on behalf of the Software AG Foundation (SAGST), further expanding the foundation’s sustainable infrastructure portfolio.
The project, named Gerena, is located in Guillena, Seville province, and began feeding electricity into the grid in June 2025. Developed by long-time KGAL partner BayWa r.e., the facility was built on former agricultural land and benefits from a 10-year Power Purchase Agreement (PPA) covering 70% of its energy output.
This investment marks the fourth pure equity renewable energy project in SAGST’s portfolio, following three wind farms in Germany. Together, the investments represent €150 million in deployed capital. The foundation plans to invest an additional €100 million via SAGST Renewables GmbH, established in 2024 to drive its renewables mandate.
According to Konrad Lindner, portfolio manager at KGAL, “the diversified mix of locations, technologies, and offtake models is designed to generate stable cash flows with controlled risk.”
Markus Ziener, Managing Director of SAGST, added: “The acquisition of Gerena completes the first phase of our renewable energy strategy. KGAL continues to be a valuable partner in identifying projects that meet our impact and sustainability criteria.”
This deal follows a series of renewable investments by KGAL in Europe, including the acquisition of the Spreeau solar park in Germany and a major onshore wind project in Sweden. In 2024, the firm also entered the Italian solar PV market via a joint venture with a local developer, as part of its plan to double its clean energy AUM by 2026.
Spain remains a hotbed for institutional investment in renewables. In recent months, Brookfield acquired a 400 MW Spanish solar pipeline from X-ELIO, and Q-Energy announced a €500 million fundraise to expand its Iberian solar portfolio. Repsol Renovables and Lightsource bp also continue to build out gigawatt-scale projects across the country.
The Software AG Foundation, one of Germany’s largest non-profits, has historically focused its capital on mission-aligned investments across real estate, capital markets, and corporate holdings. With over 30 years of philanthropic activity, it supports around 250 public projects annually, now with growing emphasis on climate-aligned infrastructure.