MADRID, Sept 24 (Reuters) - United Arab Emirates'

renewable energy company Masdar said on Tuesday it has reached

an agreement to buy green energy firm Saeta Yield from Canada's

Brookfield's in a deal valuing the company at $1.4

billion.

Under the deal, Masdar is acquiring 745 megawatts (MW) of

mostly wind assets and 1.6 gigawatts of projects under

development in Spain and Portugal, marking one of the largest

such deals in the Iberian region.

This is Masdar's second big green energy deal in recent

months in Spain, one of Europe's largest wind and solar markets.

It follows the agreement to buy a minority stake in 48 solar

plants controlled by Endesa - a unit of Italy's Enel

for 817 million euros.

Higher interest rates brought about a "normalisation" of

asset prices, Masdar's CFO told Reuters after the deal with

Endesa, adding that the company was seeking more opportunities

in the region.

The agreement with Brookfield includes 538 MW of wind assets

in Spain and 144 MW of wind assets in Portugal, with the

remaining being solar power assets in Spain. Some solar thermal

plants controlled by Saeta are not part of the sale process and

will remain under Brookfield's control.

Closing of the deal is expected around the end of the year.

"Saeta is the perfect complement to Masdar's portfolio in

Europe, especially after the recent partnership with Endesa,"

Masdar CEO Mohamed Jameel Al Ramahi said.

Spain and Portugal's abundant solar and wind resources have

drawn both domestic and foreign firms eager to leverage growing

demand for renewable energy.

Controlled by UAE's power and water firm TAQA, its national

oil company ADNOC and sovereign wealth fund Mubadala Investment

Company, Masdar aims to grow its capacity to 100 GW of renewable

energy by 2030.

Brookfield acquired and delisted Saeta, founded by Spanish

construction company ACS, in 2018 for 1 billion euros.

(Reporting by Pietro Lombardi and Andres Gonzalez; Editing by

Lincoln Feast.)