Octopus Renewables - Sale of Swedish Onshore Wind Farm
18/07/2024 07:00
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RNS Number : 8199W Octopus Renewables Infra Trust PLC 18 July 2024
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) Via Buchanan
Chris Gaydon, David Bird
Peel Hunt (Broker) 020 7418 8900
Liz Yong, Luke Simpson, Huw Jeremy (Investment Banking)
Alex Howe, Chris Bunstead, Ed Welsby, Richard Harris, Michael Bateman (Sales)
Burson Buchanan (Financial PR) 020 7466 5000
Charles Ryland, George Beale, Samuel Adams
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
(http://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
(http://www.octopusenergygeneration.com/)
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