First Acquisition in the United States

RNS Number : 0935S

SDCL Energy Efficiency Income Tst

07 March 2019

 

07 March 2019

SDCL Energy Efficiency Income Trust plc
("SEEIT" or the "Company")

First Acquisition in the United States

SDCL Energy Efficiency Income Trust plc (LSE ticker: SEIT), managed by Sustainable Development Capital LLP ("SDCL"), is pleased to announce the acquisition of a 71% interest in a high-quality Combined Heat and Power ("CHP") portfolio of eight operating CHP projects on the east coast of the USA for a total cash consideration of $5.0 million.

Six of these CHP projects are being acquired from a well-known US manufacturer and installer of CHP units and solutions. The remaining two projects are being contributed by a fund managed by a US subsidiary of SDCL, which will result in that fund owning the remaining 29% interest in the combined portfolio.

The projects, which comprise CHP units for a prison, university, multi-family developments and a nursing home, have a total installed capacity of 2.5MW of CHP and 1,250 tonnes of cooling capacity. They are each subject to Energy Purchase Agreements, which benefit from long-term contracted cash flows and have been fully operational and revenue generating for over a year. Revenues from the sites are generated through electricity sales, the provision of hot and chilled water and from electricity demand reduction.

As the acquisition was conducted alongside another fund managed by SDCL, the transaction was subject to additional review and approval by the SEEIT Board.

This acquisition represents SEEIT's first new investment since listing on the London Stock Exchange and acquiring the seed portfolio in December 2018. The Company continues to invest the proceeds from the IPO to generate SEEIT's return targets of between seven and eight per cent. per annum and to generate its target dividend of 5 pence for its first full financial year. SEEIT is continuing to review an identified pipeline of new investment opportunities - a number of which are at an advanced stage.

Jonathan Maxwell, CEO and Founder of Sustainable Development Capital LLP, commented:

"We are delighted to announce this acquisition, which follows the acquisition of our initial seed portfolio in December. It demonstrates our ability to deliver on our target pipeline opportunities in order to deliver long-term, stable and predictable cash flows and provide environmental benefits. This acquisition adds to our portfolio of CHP assets, allowing us to deliver cheaper, cleaner and more reliable energy solutions to clients, and importantly diversifying the wider portfolio geographically into the US. We are particularly pleased that SEEIT has now entered the US market, which offers opportunity for further investment into high quality CHP as we continue to seek out attractive acquisition opportunities."

For Further Information

Sustainable Development Capital LLP Jonathan Maxwell Miles Alexander Keith Driver	T: [phone]
Jefferies International Limited Gary Gould Tom Hovanessian	T: [phone]
TB Cardew Ed Orlebar Emma Crawshaw	T: [phone] / E: [e-mail] M: [phone]

About SEEIT (www.sdcleeit.com)

The SDCL Energy Efficiency Income Trust is the first listed company of its kind to invest exclusively in the energy efficiency sector. Having raised £100 million gross proceeds in its London Stock Exchange IPO in December 2018, the Company acquired its seed portfolio later that month for a total cash commitment of £87 million. Examples of the projects in the seed portfolio include Combined Cooling/Heating and Power Plants ("CCHP") at a Citi data centre and St Bartholomew's Hospital in London, as well as LED lighting projects for hundreds of Santander properties and over 100 NCP car parks in the UK.

SEEIT aims to deliver shareholders value through its investment in a diversified portfolio of Energy Efficiency projects which are driven by the opportunity to deliver lower cost, cleaner and more reliable energy solutions to end users of energy. 

SEEIT aims to give investors an attractive total return of 7-8 per cent. per annum with a stable dividend income, capital preservation and the opportunity for capital growth.

Investment Manager

SEEIT's investment manager is Sustainable Development Capital LLP ("SDCL"), an investment firm established in 2007, with a proven track record of investment in energy efficiency and decentralised generation projects in the UK, Continental Europe, North America and Asia.

SDCL is headquartered in London and the group also operates worldwide from offices in New York, Dublin and Singapore. SDCL is authorised and regulated in the UK by the Financial Conduct Authority.

 

END

 

 

ACQUGURCWUPBGMQ