Acquisition of UK Solar PV Assets

RNS Number : 8867G

Octopus Renewables Infra Trust PLC

20 March 2020

 

20 March 2020

LEI: 213800B81BFJKWM2JV13

Octopus Renewables Infrastructure Trust plc

("ORIT" or the "Company")

Acquisition of UK Solar PV Assets

Octopus Renewables Infrastructure Trust plc is pleased to announce that it has completed the acquisition of a 100% interest in a portfolio of solar PV assets located throughout the UK for an initial cash consideration of £144.3m. The portfolio consists of 8 fully operational solar PV assets, with a capacity of 122.8MW, that qualify under the Renewable Obligation Certificate ("ROC") regime. The assets began operations between 2013 and 2015 and currently have an average remaining life of 23.5 years. The final consideration may be increased by up to £5.4m contingent on securing extensions to the current lease periods. The Company will receive the economic benefit of all cash flows from the portfolio from 1 January 2020.

Site Name	ROC Banding	Capacity (MW)	Location
Mingay	1.6	19.32	Wilburton, Cambridgeshire
Abbots	1.6	24.67	Abbots Ripton, Cambridgeshire
Ermine	1.4	32.45	North Rauceby, Lincolnshire
Westerfield	1.4	12.98	Brize Norton, Oxfordshire
Chisbon	1.4	12.34	St. Osyth, Essex
Ottringham	1.4	6.07	Hull, Yorkshire
Wiggin Hill	1.4	11.44	St. Ives, Cambridgeshire
Penhale	1.6	3.53	St. Issey, Cornwall
	Total	122.80

This portfolio forms part of the pipeline assets disclosed in the Company's prospectus dated 19 November 2019 and was acquired from an entity managed by the Company's investment manager, Octopus Investments Limited (the "Investment Manager"). In line with the Company's procedures, an external fairness opinion on the value of the portfolio was commissioned from an independent expert. Today's investment amounts to approximately 42% of the net IPO proceeds and is the second in a pipeline of opportunities that Octopus Investments is currently pursuing on behalf of the Company.

Phil Austin, Chairman of Octopus Renewables Infrastructure Trust plc, commented:

"I am delighted to announce the acquisition of this portfolio of ROC subsidised UK solar farms. This investment marks a significant step towards building a diversified portfolio of renewable energy assets aimed at reducing the impacts of climate change. This particular investment is expected to produce enough electricity each year to service the equivalent of 38,000 UK homes."

Chris Gaydon, Investment Director at Octopus Renewables, commented:

"Following on from the acquisition of the Ljungbyholm Wind Farm which we announced on 10 March 2020, we are pleased to announce our second acquisition on behalf of Octopus Renewables Infrastructure Trust. As per our strategy of acquiring a diversified portfolio of assets, this gives us exposure to the UK market and the solar industry. We have now deployed 59% of the funds raised at IPO.

"As part of our ongoing process, we have assessed the possible impact of the Covid-19 pandemic on the Company's assets and pipeline and at present we do not expect there to be any material impact on asset performance or deployment of the balance of the IPO proceeds. For our construction projects, such as the Ljungbyholm Wind Farm, we are in close contact with our partners and have made allowances for construction delays in our investment case, in addition to other commercial protections implemented specifically with Covid-19 in mind. We will continue to keep the situation under review. 

"We continue to see significant opportunities for further acquisitions and we look forward to updating shareholders with our progress."

For further information please contact:

Octopus Investments Limited (Investment Manager) Matt Setchell, Chris Gaydon	Via Buchanan
Peel Hunt (Broker) Liz Yong, Luke Simpson, Tom Pocock	020 7418 8900
Buchanan (Financial PR) Charles Ryland, Kelsey Traynor, Hannah Ratcliff	020 7466 5000
PraxisIFM ( Company Secretary )	020 7653 9690

Notes to editors

About Octopus Renewables Infrastructure Trust

Octopus Renewables Infrastructure Trust plc is a closed end 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. Octopus Investments Limited acts as the Investment Manager to the Company.

Further details can be found at www.octopusrenewablesinfrastructure.com

About Octopus Renewables

Octopus Renewables, part of Octopus Investments and the wider Octopus Group, is a specialist clean energy investment manager with a mission to accelerate the transition to a future powered by renewable energy. Since 2010, Octopus Renewables has, on behalf of its clients, invested in a diverse portfolio of assets with a capacity of over 2.5GW and is now the largest commercial solar investor in Europe and a leading UK investor in onshore wind. Octopus Renewables is co-led by Matt Setchell and Alex Brierley and has over 70 employees in the UK and Australia.

Further details can be found at www.octopusrenewables.com

Neither the content of any website referred to in this announcement nor the content of any website accessible from hyperlinks is incorporated into, or forms part of, this announcement.

 

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