Aspen to set up solar park in Italy

Aspen Group Ltd. (TASE:ASGR) has signed an agreement to set up a 1-megawatt solar park in Italy at a cost of �4.44 million (about NIS 21.5 million). The agreement was signed by a foreign subsidiary in which Aspen owns a 70% stake. An Italian contractor will build the solar field.

Aspen estimates the return on investment in the first year of operation at 14%.

Aspen will be eligible for the Italian government's subsidiary of �0.436 per kilowatt/hour of electricity produced over 20 years. If electricity rates fall, the company will be eligible for a price adjustment.

Aspen Group CEO Ilan Gifman pointed to solar energy as a growth engine for the real estate company. He said, "For the first time, we are moving beyond Israel and setting up a solar farm in Italy. We intend to expand our investments in this field in Israel and overseas. We also intend to expand our portfolio of income-producing properties, especially in Israel."

Aspen Group's share price rose 1.2% in morning trading to NIS 5.06, giving a market cap of NIS 238 million.

Published by Globes [online], Israel business news - www.globes-online.com - on September 5, 2010