Although Pratio will fully develop greenfield projects, projects are primarily acquired by the Company from third-party developers.
Projects are selected according to development maturity including status of site acquisition, permits and licenses, and PPA as well as the potential project return that can be achieved.
Company projects typically have an unleveraged IRR of 12% to 15%. Because of the developing nature of the territories of focus for Pratio and the potential risks associated with these areas project risks including political and economic, are identified and the appropriate mechanism put in place to offset these at the onset of all projects.
This practice of “hedging” allows Pratio to enjoy its target returns without excessive exposure.
Pratio has found that significant value added can be achieved through utilizing the Company’s financial background and strengths to conclude further development and/or restructuring of these third- party projects as required to achieve notice to proceed and thereafter sell.
While on a case by case basis, Pratio may also conduct and sell a project on a turn-key basis the Company does not pursue turn-key projects on a speculative basis.