Jlen Environmental: Acquisition
14/09/2022 07:00
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RNS Number : 3296Z JLEN Environmental Assets Group Ltd 14 September 2022
14 September 2022
JLEN Environmental Assets Group Limited
("JLEN" or the "Company")
Investment in a glasshouse construction project and supply of heat and power
from adjacent anaerobic digestion plant
JLEN, the listed environmental infrastructure fund, is pleased to announce an
investment of up to £26.7m into a glasshouse project via a combination of a
senior secured loan for the construction of the glasshouse and a convertible
loan and a minority equity stake in the glasshouse operator to provide for
working capital. The investment offers further diversification for the Company
and is JLEN's first investment into the commercial glasshouse controlled
environment space.
The consented 2.1 hectare glasshouse will be built in the UK, in proximity to
an existing anaerobic digestion ("AD") plant owned by JLEN, which will
separately be upgraded to supply low carbon heat and power to the glasshouse
via a private wire. Waste heat from the existing CHP engines will be captured
and delivered by pipe and a heat exchanger to the glasshouse. Wastage from the
glasshouse produce may also be returned to the digester, creating a circular
ecosystem. The glasshouse project will receive energy via the private wire at
a discount to the import market price and the AD plant will benefit from the
inflation-linked RHI regime and sell electricity at a premium price versus
exporting it to the grid while also utilising otherwise wasted heat.
The advanced glasshouse, which is expected to commence production in 2023,
will be capable of growing a wide array of different horticultural products,
from consumable produce to cut flowers. Its initial operator will focus on the
lawful cultivation of the heavily regulated tetrahydrocannabinol flower,
conforming to tightly monitored licence requirements for secure supply to
established UK-based pharmaceutical manufacturers.
This will generate new diversified revenue streams for JLEN derived from
glasshouses, whilst increasing revenues from an existing asset.
Ed Warner, Chair of JLEN, said:
"We are happy to announce JLEN's first investment into a large scale,
high-spec glasshouse. We believe this is an attractive opportunity for JLEN to
enhance the value of one of its existing assets, creating an integrated
ecosystem whilst deploying capital into the controlled environment
infrastructure sector."
-ENDS-
For further information and enquiries, please contact:
Foresight Group +44(0) 20 3667 8100
Chris Tanner
Chris Holmes
Winterflood Securities Limited +44(0)20 3100 0000
Neil Langford
Chris Mills
SEC Newgate UK
Elisabeth Cowell Jlen@SecNewgate.co.uk
Axaule Shukanayeva +44(0)20 3757 6882
Max Richardson
About JLEN
JLEN's investment policy is to invest in a diversified portfolio of
Environmental Infrastructure. Environmental Infrastructure is defined by the
Company as infrastructure assets, projects and asset-backed businesses that
utilise natural or waste resources or support more environmentally friendly
approaches to economic activity, support the transition to a low carbon
economy or which mitigate the effects of climate change. Such investments will
typically feature one or more of the following characteristics:
· long-term, predictable cash flows, which may be wholly or partially
inflation-linked cash flows;
· long-term contracts or stable and well-proven regulatory and legal
frameworks; or
· well-established technologies, and demonstrable operational performance
JLEN's aim is to provide investors with a sustainable, progressive dividend
per share, paid quarterly and to preserve the capital value of the portfolio
over the long term on a real basis. The target dividend for the year to 31
March 2023 is 7.14 pence per share(1). The dividend is payable quarterly.
Further details of the Company can be found on its website www.jlen.com
(http://www.jlen.com)
LEI: 213800JWJN54TFBMBI68
((1)) These are targets only and not profit forecasts. There can be no
assurance that these targets will be met or that the Company will make any
distributions at all.
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