MADRID - Canadian investment fund Brookfield is close to selling Saeta Yields, a renewable energy company with assets in Spain and Portugal, to Masdar of the United Arab Emirates, newspaper Expansion reported on Wednesday, citing unidentified sources.

The transaction could exceed 1.5 billion euros ($1.66 billion), the newspaper reported.

Saeta owns 28 wind farms, 10 photovoltaic parks and seven solar thermal plants, according to its website.

A spokesperson for Brookfield declined to comment while Masdar and Saeta were not immediately available for comment.

Masdar's 817 million euro ($887 million) acquisition of a 49.99% stake in 48 solar plants controlled by Endesa, a unit of Italy's Enel, was announced in July.

Brookfield acquired Saeta, founded by construction company ACS, in 2018 for 1 billion euros and delisted it.

Spain and Portugal's abundant solar and wind resources have drawn both domestic and foreign firms eager to leverage growing demand for renewable energy. This interest has sparked a surge in renewable energy deals in line with the broader global trend towards sustainable investments.

($1 = 0.9046 euros)

(Reporting by Inti Landauro; editing by Jason Neely)