REG - Downing Renew& Infra - Potential sale of Swedish wind farm

Downing Renewables & Infrastructure TrustAnnouncement

26/09/2024 07:00

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RNS Number : 7030F  Downing Renewables & Infrastructure  26 September 2024

26 September 2024

Downing Renewables & Infrastructure Trust plc

(the "Company" or "DORE")

Potential sale of Swedish wind farm

The Board of DORE is pleased to announce it has entered into exclusive
discussions in relation to the sale of DORE's entire interest in
Gabrielsberget wind farm in Sweden ("Gabrielsberget").

The offer price is at a small premium to the carrying value as at 30 June 2024
and the transaction is anticipated to complete in Q4 2024, returning c.14% of
NAV to the Company.

DORE purchased Gabrielsberget in January 2022 for a total consideration of
£19.8 million. A series of contractual and operational improvements,
including most recently a 5-year extension to the operating lease which
resulted in a £4.4 million valuation uplift, have been the principal drivers
behind a c.50% uplift on DORE's investment as at 30 June 2024.

In the Manager's view now is the right time to capitalise on these value
enhancements and the sale proceeds will be used to repay fully DORE's
revolving credit facility and to fund further growth and re-investment in the
Company's hydropower portfolio. This will include additions to the portfolio
as well as supporting ongoing revenue optimisation projects. The sale of
Gabrielsberget also makes available additional capital to continue DORE's
share buyback programme.

Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP,
commented: "It is testament to the expertise of our in-house asset management
team that we have secured the marked increase in the asset's value and now
have the opportunity to realise it. This transaction will place the Company in
a favourable position to capitalise on an attractive pipeline of internal and
external investment opportunities in our continuing efforts to increase
quantity and quality of returns for our shareholders."

DORE will provide further information to shareholders on the sale process in
due course. The Company is in exclusive discussions in relation to the
potential sale of Gabrielsberget and there is no guarantee that the sale will
be completed. The proposed transaction is subject to formal Board approval.

 

 

ENDS

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as amended by regulation 11 of the Market Abuse (Amendment)
(EU Exit) Regulations 2019/310. Upon the publication of this announcement via
Regulatory Information Service, this inside information is now considered to
be in the public domain.

LEI: 2138004JHBJ7RHDYDR62

Contact

 Downing - Investment Manager to the Company                         +44 (0)20 3954 9908

 Tom Williams

 Singer Capital Markets - Joint Corporate Broker                     +44 (0)20 7496 3000

 Robert Peel, Alaina Wong, Jalini Kalaravy (Investment Banking)

 Sam Greatrex, Alan Geeves, James Waterlow, William Gumpel (Sales)

 Winterflood Securities Limited - Joint Corporate Broker             +44 (0)20 3100 0000

 Neil Morgan (Corporate Finance)

 Darren Willis, Andrew Marshall (Sales)

 Cardew Group - Public relations advisor to the Company              +44 (0)20 7930 0777

 Tania Wild                                                          +44 (0)7425 536 903

 Henry Crane                                                         +44 (0)7918 207157

                                                                     DORE@cardewgroup.com (mailto:DORE@cardewgroup.com)

 

About Downing Renewables & Infrastructure Trust plc

DORE is a closed-end investment trust that aims to provide investors with an
attractive and sustainable level of income, with an element of capital growth,
by investing in a diversified portfolio of renewable energy and infrastructure
assets in the UK and Northern Europe. DORE has been awarded the London Stock
Exchange's Green Economy Mark in recognition of its contribution to the global
'Green Economy'.

The Board classifies DORE as a sustainable fund with a core objective of
accelerating the transition to net zero through its investments, compiling and
operating a diversified portfolio of renewable energy and infrastructure
assets to help facilitate the transition to a more sustainable future. The
Company believes that this directly contributes to climate change mitigation.

DORE's strategy, which focuses on diversification by geography, technology,
revenue and project stage, is designed to increase the stability of revenues
and the consistency of income to shareholders. For further details please
visit   www.doretrust.com (http://www.doretrust.com/) .

About Downing

Downing is a responsible investment manager established in London in 1986. We
currently manage £2.1 billion of assets under a broad range of investment
mandates across our funds, investment trusts and tax-efficient products. As a
certified B Corporation, we are focussed on creating a sustainable future, our
key investment areas are renewable energy, infrastructure, property and
healthcare.

Downing has c.80 professionals dedicated to renewable energy and
infrastructure and a proven track record in renewables. Since 2010, Downing
has made more than 200 investments and has over £920 million of assets under
management in this sector.

For further details please visit www.downing.co.uk

This announcement is not for publication or distribution, directly or
indirectly, in or into the United States of America. This announcement is not
an offer of securities for sale into the United States. The securities
referred to herein have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States, except pursuant to an applicable exemption from registration.
No public offering of securities is being made in the United States.

 

 

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