REG - National Grid PLC - Sale of interest in St William Homes LLP JV

National GridAnnouncement

15/03/2022 11:15

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RNS Number : 8300E  National Grid PLC  15 March 2022

 

 

15 March 2022

 

National Grid plc ('National Grid' or 'Company')

 

Sale of interest in St William Homes LLP joint venture

 

 

National Grid plc ("National Grid") announces the sale of its entire 50%
equity interest in the St William Homes LLP ("St William") joint venture to
The Berkeley Group plc ("Berkeley Group") for cash consideration of £412.5
million.

 

Alongside the joint venture sale, National Grid and Berkeley Group have
entered into a series of sale and purchase agreements for a number of
additional sites owned by National Grid which are expected to complete over
the period to 2025 for a total consideration of approximately £270 million.
In addition, deferred consideration of £230 million in respect of sites
previously sold to St William is payable by Berkeley Group to National Grid
over the period to 2031.

 

St William was formed in 2014 as a joint venture between National Grid and the
Berkeley Group to develop previously industrial sites into residential
developments in London and the South East UK. As these sites are now largely
transitioned, it is the natural time for National Grid to crystalise its
investment, whilst allowing Berkeley Group to focus on the delivery of these
sites.

 

 

For further details, please contact:

 Investors and Analysts
 Nick Ashworth           +44 (0) 7814 355 590
 Angela Broad            +44 (0) 7825 351 918
 Jonathan Clay           +44 (0) 7899 928 247
 James Flanagan          +44 (0) 7970 778 952

 Media
 Danielle Dominey-Kent   +44 (0) 7977 054 575

 

 

CAUTIONARY STATEMENT

This announcement contains certain statements that are neither reported
financial results nor other historical information. These statements are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These statements include information with respect to
National Grid's (the Company) financial condition, its results of operations
and businesses, strategy, plans and objectives. Words such as 'aims',
'anticipates', 'expects', 'should', 'intends', 'plans', 'believes', 'outlook',
'seeks', 'estimates', 'targets', 'may', 'will', 'continue', 'project' and
similar expressions, as well as statements in the future tense, identify
forward-looking statements. These forward-looking statements are not
guarantees of National Grid's future performance and are subject to
assumptions, risks and uncertainties that could cause actual future results to
differ materially from those expressed in or implied by such forward-looking
statements. Many of these assumptions, risks and uncertainties relate to
factors that are beyond National Grid's ability to control or estimate
precisely, such as changes in laws or regulations, including any arising as a
result of the United Kingdom's exit from the European Union, announcements
from and decisions by governmental bodies or regulators, including those
relating to the RIIO-2 price controls; the timing of construction and delivery
by third parties of new generation projects requiring connection; breaches of,
or changes in, environmental, climate change and health and safety laws or
regulations, including breaches or other incidents arising from the
potentially harmful nature of its activities; network failure or interruption,
the inability to carry out critical non-network operations and damage to
infrastructure, due to adverse weather conditions including the impact of
major storms as well as the results of climate change, due to counterparties
being unable to deliver physical commodities, or due to the failure of or
unauthorised access to or deliberate breaches of National Grid's IT systems
and supporting technology; failure to adequately forecast and respond to
disruptions in energy supply; performance against regulatory targets and
standards and against National Grid's peers with the aim of delivering
stakeholder expectations regarding costs and efficiency savings, as well as
against targets and standards designed to deliver net zero; and customers and
counterparties (including financial institutions) failing to perform their
obligations to the Company. Other factors that could cause actual results to
differ materially from those described in this announcement include
fluctuations in exchange rates, interest rates and commodity price indices;
restrictions and conditions (including filing requirements) in National Grid's
borrowing and debt arrangements, funding costs and access to financing;
regulatory requirements for the Company to maintain financial resources in
certain parts of its business and restrictions on some subsidiaries'
transactions such as paying dividends, lending or levying charges; the delayed
timing of recoveries and payments in National Grid's regulated businesses, and
whether aspects of its activities are contestable; the funding requirements
and performance of National Grid's pension schemes and other post-retirement
benefit schemes; the failure to attract, develop and retain employees with the
necessary competencies and business capabilities, and any significant disputes
arising with National Grid's employees or the breach of laws or regulations by
its employees; the failure to respond to market developments, including
competition for onshore transmission; the threats and opportunities presented
by emerging technology; the failure by the Company to respond to, or meet its
own commitments as a leader in relation to, climate change development
activities relating to energy transition, including the integration of
distributed energy resources; and the need to grow the Company's business to
deliver its strategy, as well as incorrect or unforeseen assumptions or
conclusions (including unanticipated costs and liabilities) relating to
business development activity, including the integration of WPD, the sale of
the Company's Rhode Island gas and electricity business and the proposed
sale of a majority stake in its UK gas transmission business, and joint
ventures. For further details regarding these and other assumptions, risks and
uncertainties that may impact National Grid, please read the Strategic Report
section and the 'Risk factors' on pages 236 to 239 of National Grid's most
recent Annual Report and Accounts, as updated by National Grid's unaudited
half-year financial information for the six months ended 30 September 2021
published on 18 November 2021. In addition, new factors emerge from time to
time and National Grid cannot assess the potential impact of any such factor
on its activities or the extent to which any factor, or combination of
factors, may cause actual future results to differ materially from those
contained in any forward-looking statement. Except as may be required by law
or regulation, the Company undertakes no obligation to update any of its
forward-looking statements, which speak only as of the date of this
announcement.

 

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