Cantor Fitzgerald clients invested a total of €2.3m in Raragh Development Holdings Ltd (RDHL) over two separate tranches in 2013 and 2014. The investment qualified for EIIS (Employment and Investment Incentive Scheme) tax relief and investors received total tax relief of 40% over the life of the investment. In November 2018 RDHL was acquired by Mainstream Renewable Power Ltd, and in doing so provided Cantor Fitzgerald investors with a successful exit.
RDHL was the holding company that wholly owned Raragh Developments Ltd, an SPV (special purpose vehicle), whose sole purpose was the construction and operation of a 10MW wind farm near Kingscourt, Co. Cavan. The project had originally been acquired with planning permission in place. However this decision was overturned in 2016 and the project incurred delays. RDHL successfully appealed this decision and full planning permission was granted in September 2018.
Despite the project delays, the 2013 investors in RDHL received a total gross return, including tax relief of 1.65 times their original investment. While the 2014 tranche received a gross return of 1.5 times their original investment. RDHL has been another successful EIIS investment for Cantor Fitzgerald clients and follows on the back of the previous EIIS wind farm investment in Caherciveen Wind Ltd whereby investors successfully exited in 2015 and 2016 as per the original investment terms. We continue to identify opportunities in the renewable energy sector and aim to bring further projects to clients in the coming months.