28 August 2024
LEI: 213800B81BFJKWM2JV13
Octopus Renewables
Infrastructure Trust plc
("ORIT"
or the "Company")
Completion of sale of Swedish
Onshore Wind Farm
Further to the Company's
announcement on 18 July 2024, Octopus Renewables Infrastructure
Trust plc announces that it has completed the sale of the
Ljungbyholm onshore wind farm in Sweden to DWS Infrastruktur
Europa, a DWS core infrastructure fund (the "Transaction"). The
sale price of €73.7 million delivers an IRR of 11.3%
over the lifetime of the Company's investment. The proceeds
represent a premium of £1.4 million to the prevailing valuation of
Ljungbyholm prior to agreeing the sale, of
which £0.8 million was incorporated into the Net Asset Value as at
30 June 2024, with the additional c.£0.6 million to be reflected in
the 30 September 2024 Net Asset Value, which will be published in
early November 2024.
The proceeds
of the Transaction will predominantly be
used to partially repay the Company's short-term
debt facility, following which short-term debt
is expected to reduce to approximately £134 million and total gearing is expected to fall from 46% as at 30 June
2024 to 43%.1
ORIT acquired the 48 MW wind farm at
pre-construction stage in March 2020, investing c. €68 million 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 is part of the Company's
previously announced 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. Post the Transaction, the capital recycling
programme has to date generated gross proceeds of approximately
£159 million.
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 complete the
latest phase of ORIT's capital recycling programme, securing an
attractive sale price at a premium to the asset's holding value and
which once again provides support to the Company's valuations. The
proceeds enable ORIT to repay a significant proportion of its
short-term debt, which has been a key focus for the Company.
Completion of the sale also further demonstrates our Investment
Manager's ability to manage the construction and successful
operation of renewable energy assets."
Notes
1. Prior to
approximately £30 million of committed investments due to
be made in 2024, the majority of which relates to the acquisition
of the fifth site at the Ballymacarney solar complex
in Ireland.
For
further information please contact:
|
Octopus Energy Generation (Investment Manager)
Chris Gaydon, David Bird
|
Via Buchanan
|
|
Peel Hunt (Broker)
Liz Yong, Luke Simpson, Huw Jeremy
(Investment Banking)
Alex Howe, Chris Bunstead, Ed
Welsby, Richard Harris, Michael Bateman (Sales)
|
020 7418 8900
|
|
Burson Buchanan (Financial PR)
Charles Ryland, George
Beale, Samuel Adams
|
020 7466 5000
|
|
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
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