18 July 2024
LEI: 213800B81BFJKWM2JV13
Octopus Renewables
Infrastructure Trust plc
("ORIT"
or the "Company")
Sale of Swedish Onshore Wind
Farm
Octopus Renewables Infrastructure
Trust plc announces that, as part of its capital recycling
programme, it has entered into a conditional agreement to sell the
Ljungbyholm onshore wind farm in Sweden to a German institutional
investor for total consideration of approximately €74 million (the
"Transaction"). The sale price is in line with the Company's
valuation of Ljungbyholm as at 31 March 2024 and will
realise an IRR of approximately 11% over the lifetime of ORIT's
investment, with the net proceeds expected to be
used predominantly to
repay part of ORIT's short-term debt facility.
Completion of the Transaction is subject, inter
alia, to foreign direct investment approval by the Swedish
Inspectorate for Strategic Products, which is expected later this
year.
ORIT acquired the 48 MW wind farm at
pre-construction stage in March 2020, investing c. €68m in the
project. The Investment Manager, Octopus Energy Generation managed
the construction phase, successfully bringing the wind farm into
operation in June 2021.
The Transaction forms part of the Company's
capital recycling programme, and follows the sale of two Polish
onshore wind assets in December 2023 and the divestment of an
option over a Spanish solar PV project in January 2024. Upon
completion of the Transaction, the capital
recycling programme will have generated approximately £159 million.
Other capital recycling projects are in progress and
the Company will provide further updates when
appropriate.
ORIT was advised on the Transaction by Newsec
Energy Transition AB.
Phil Austin, Chairman of Octopus Renewables Infrastructure
Trust plc, commented: "We are
pleased to enter this transaction, which is another key part of
ORIT's capital recycling programme. The agreed price further
supports the Company's valuations, and once the Transaction is
completed it will enable us to reduce our short-term debt which, as
we have previously communicated, is a key objective for us at this
time. Ljungbyholm was the Company's first investment following
ORIT's IPO, and the exit further demonstrates our Investment
Manager's ability to manage the construction and operation of new
renewable energy assets, which helps to drive the transition to net
zero."
For
further information please contact:
|
Octopus Energy Generation (Investment Manager)
Chris Gaydon, David Bird
|
Via Buchanan
|
|
Peel Hunt (Broker)
Liz Yong, Luke Simpson, Huw Jeremy
(Investment Banking)
Alex Howe, Chris Bunstead, Ed
Welsby, Richard Harris, Michael Bateman (Sales)
|
020 7418 8900
|
|
Burson Buchanan (Financial PR)
Charles Ryland, George
Beale, Samuel Adams
|
020 7466 5000
|
|
Apex Listed Companies Services (UK) Limited (Company
Secretary)
|
020 3327
9720
|
Notes to editors
About Octopus
Renewables Infrastructure Trust
Octopus Renewables Infrastructure Trust
("ORIT") is a premium-listed, closed-ended investment company
incorporated in England and Wales focused on
providing investors with an attractive and sustainable level of
income returns, with an element of capital growth, by investing in
a diversified portfolio of renewable energy assets
in Europe and Australia. As an impact fund, ORIT is
helping accelerate the transition to net zero by investing in green
energy, whilst also contributing to a broader set of UN Sustainable
Development Goals through its impact initiatives. ORIT's investment
manager is Octopus Energy Generation.
Further details can be found
at www.octopusrenewablesinfrastructure.com
About Octopus
Energy Generation
Octopus Energy Generation is driving the
renewable energy agenda by building green power for the future. Its
specialist renewable energy fund management team invests in
renewable energy assets and broader projects helping the energy
transition, across operational, construction and development
stages. The team was set up in 2010 based on the belief that
investors can play a vital role in accelerating the shift to a
future powered by renewable energy. It has a 13-year track record
with approximately £6.7 billion of assets under management (AUM)
(as of 31 March 2024) across 20 countries and total 4.0GW. These
renewable projects generate enough green energy to power 2.5
million homes every year, the equivalent of taking over 1.5 million
petrol cars off the road. Octopus Energy Generation is the trading
name of Octopus Renewables Limited.
Further details can be found
at www.octopusenergygeneration.com