Stabilized Income

■About Asset
TIF believed that solar energy facilities produce stable cash flow as it does not require complicated maintenance nor fuel supply and Feed-in Tariff (FIT) grantees fixed purchase price of generated energy for long-period. TIF considered that these advantages outweigh several issues such as cost, stability, and efficacy.

TIF follows several standards to add asset in order to stabilize income

(I) Currently operating solar energy facilities.
(Ii) Insure facilities with fire, income and liability insurance
(Iii) Outsource Operation and Maintenance service film to ensure appropriate maintenance

■About Rent Scheme
Regarding lease agreement on solar energy facilities, TIF Secure stable income through a combination of Minimum Guaranteed Rent scheme and performance-linked rent. Furthermore, TIF reserve majority of income is based on Minimum Guaranteed Rent Scheme which will not be affected by actual generation income from solar energy facilities. In addition, TIF signs an agreement to ensure that TIF receives Minimum Guaranteed Rent from lessee even if actual generation is below to expectation.

 

 

■Selection of Operator
TIF select operator based on operator’s financial status, experiences on operating solar energy facility and operator selection criteria.

■Minimize Operator Risks
TIF has right to terminate an agreement with an operator at TIF’s own discretion in case of operator experience financial difficulties. In addition, an operator is obligated to corporate to transfer rights to a new operator. Overall, it reduces operator risks.

Collaboration with Sponsor

TIF’s sponsor, Takara Leben has extensive experience and know-how of developing and operating solar energy facilities.

TIF and its asset manager signed a sponsor support agreement and right to use commercial brand logo with Takara Leben
TIF believes that this collaboration allows TIF to obtain various support from sponsor to contribute TIF’s both external and internal growth.

 

 

■Usage of Takara Leben Brand
TIF and its asset manager signed a contract to use commercial brand logo with Takara Leben
TIF believes that usage of Takara Leben Brand contributes to growing TIF by utilizing the brand influence of the sponsor.

External Growth Strategy

■Asset Manager’s Network
As a member of Takara Leben group, TIF’s asset manager specialized in solar energy facilities.
TIF believed that combination of extensive know-how from Takara Leben and TIF’s asset manager contributed growth of TIF in mid to long term.
Furthermore, the asset manager expanding network to connect secondary market and its information.

 

■Support from the Sponsor Group
TIF believes that extensive support from the sponsor contributed to the external growth of TIF.
TIF also believes that access rights to sponsor’s network contributed to the external growth of TIF.

Internal Growth Strategy

■Appropriate Maintenance System
TIF outsources operation and maintenance service to specialized films to ensure appropriate care of solar energy facilities and it eventually improve the value of assets and stabilize income from mid to long perspective

 

■Capex
In order to increase profit of operating asset in mid to long terms, TIF develops and execute for Capex for individual facilities with discussion with operator and OM films,

TIF decides cost for repair and Capex with taking depreciation cost of entire portfolio into account.
In addition repair, maintenance and operation cost of renewable energy facility under operating are burdens of lessee.