REG - GCP Infra Inv Ltd - Onshore Wind Disposal & Capital Allocation Update

GCP Infrastructure InvestmentsAnnouncement

30/01/2025 11:15

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RNS Number : 3090V  GCP Infrastructure Investments Ltd  30 January 2025

GCP Infrastructure Investments Limited

("GCP Infra" or the "Company")

LEI: 213800W64MNATSIV5Z47

Onshore Wind Disposal and Capital Allocation Policy Update

30 January 2025

Onshore Wind Disposal

GCP Infra is pleased to announce it has disposed of its interest in two
operational onshore wind farms, Pates Hill Wind Farm and Milton Keynes Wind
Farm, with total generating capacity of 28MW (the "Projects"). The Projects
are located in Cumbria and Milton Keynes, each with installed capacity of
14MW, powered by seven Vestas V80 2.0MW turbines. The Projects benefit from
Renewable Obligation (RO) subsidy support and have been operational since
2010.  The Projects have been acquired by OnPath Energy, a subsidiary of
Brookfield Asset Management.

The disposal proceeds are made up of a day one consideration and a deferred
element, the payment of which is linked to milestones. Without factoring in
any deferred amounts, the realised IRR of the Company's investment is 9.7%.
Including deferred amounts (and including the expected time of receipt of such
amounts) increases the IRR to 10.3%.

The disposal proceeds (including deferred amounts) represent c. 88% of the
valuation included in the net asset value at 30 September 2024. Day one cash
proceeds of c. £16.5 million have been generated, with a further c. £1.3
million of deferred proceeds, and c. £1.0 million of tax benefits released.

Proceeds from the disposal will be used in line with the Company's published
capital allocation policy and are expected to contribute to the Company's
commitment to return at least £50 million to shareholders by way of share buy
backs.

Capital Allocation Policy Update

The Board of Directors of the Company reconfirmed its commitment to the
Capital Allocation Policy in its 2024 Annual Report and Accounts. Continuing
to prioritise a material reduction in leverage, as well as reducing
equity-like exposures and exposures in certain sectors, whilst also
facilitating the return of £50 million of capital to shareholders.

This disposal represents further progress in facilitating the Company's
execution on its capital allocation policy, decreasing equity exposure to
merchant electricity prices and providing cash resources to support the share
buyback programme. The Board and Gravis Capital Management Limited continue to
focus on additional opportunities for refinancings or disposals within the
portfolio in order to achieve the targets, set out in the capital allocation
policy.

Andrew Didham, Chair of GCP Infra commented:

"This disposal reinforces the Company's commitment to its capital allocation
policy and illustrates the attractive risk-adjusted returns the Company has
been able to achieve for shareholders. The disposal is in line with the stated
objectives of the capital allocation policy and the Board remain focused on
the continued recycling of capital from the Company's assets as has been set
out in such policy."

For further information, please contact:

 

 Gravis Capital Management Limited  +44 (0)20 3405 8500

 Philip Kent

 Max Gilbert

 Cameron Gardner

 RBC Capital Markets                +44 (0)20 7653 4000

 Matthew Coakes

 Elizabeth Evans

 Stifel Nicolaus Europe Limited     +44 (0)20 7710 7600

 Edward Gibson-Watt

 Jonathan Wilkes-Green

 Burson Buchanan Limited            +44 (0)20 7466 5000

 Helen Tarbet

 Henry Wilson

 Samuel Adams

 

Notes to the Editor

 

About GCP Infra

GCP Infra is a closed-ended investment company and FTSE-250 constituent, its
shares are traded on the main market of the London Stock Exchange. The
Company's objective is to provide shareholders with regular, sustained,
long-term distributions and to preserve capital over the long term by
generating exposure to UK infrastructure debt and related and/or similar
assets.

 

The Company primarily targets investments in infrastructure projects with long
term, public sector-backed, availability-based revenues. Where possible,
investments are structured to benefit from partial inflation protection. GCP
Infra is advised by Gravis Capital Management Limited.

 

GCP Infra has been awarded with the London Stock Exchange's Green Economy
Mark in recognition of its contribution to positive environmental outcomes.

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