Acquisition of three UK solar parks

RNS Number : 6242O

Renewables Infrastructure Grp (The)

08 August 2014

 

8 August 2014

The Renewables Infrastructure Group Limited
("TRIG" or the "Company" and together with the holding company subsidiaries, the "Group")

Acquisition of three UK solar parks

·    Further expansion of the TRIG portfolio with the addition of three operational solar photovoltaic (PV) parks in Dorset, Norfolk and Cornwall with combined generating capacity of 56.6MW for an aggregate valuation of £73.7 million.

·    TRIG's aggregate portfolio now comprises 27 investments totaling approximately 398 MW.

·    The acquisitions further diversify TRIG's portfolio, with solar PV now representing 11 out of 27 portfolio investments.

·    The transaction has been funded from the Group's acquisition facility and from existing cash resources.

Richard Crawford from InfraRed Capital Partners, TRIG's Investment Manager, said:  "These three large scale solar projects nearly double the generating capacity of TRIG's solar PV portfolio.  Solar now accounts for in excess of one third of the Group's investments by value, up from 10% at IPO, providing investors with good exposure to the two well-established and complementary technologies of onshore wind and solar PV."

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TRIG today announces that it has acquired three large-scale ground-mounted fully operational solar PV generating projects, on agricultural sites in the South and East of England with an aggregate generating capacity of 56.6MW from a joint venture between the British Solar Renewables group, one of UK's most experienced solar developers with over 150 employees, and Santander. The aggregate valuation of 100% of the interests in the three projects is £73.7 million (or approximately £76 million including working capital).   The final consideration payable is subject to certain performance adjustments.

The acquired portfolio comprises a 24.2MW plant at Parley Court Farm, Dorset, a 21.2MW plant at Egmere Airfield, Norfolk and a 11.1MW plant at Penare Farm, Cornwall.  The projects have been constructed by Isolux Corsán with modules supplied by ReneSola. All projects have received ROC accreditation at 1.6 ROCs per MWh. Isolux Corsán has been retained to provide operations and maintenance services under an agreement covering the two year warranty period under the EPC. Short term power purchase agreements are already in place and longer term replacements are being considered. The projects do not have project-level debt. In due course, TRIG may introduce project-level debt and/or sell down a minority interest in the projects to optimise the capital structure and enhance overall returns to the Group.   

The acquisition has been funded by the Group partly from cash resources and partly from utilisation of the revolving acquisition facility which (after making the acquisition) is approximately £40m drawn.

Enquiries

InfraRed Capital Partners Limited                              [phone]
Richard Crawford
Matt Dimond

Tulchan Communications                                           [phone]
Martha Walsh
Camilla Cunningham

Canaccord Genuity Limited                                         [phone]
Andrew Zychowski
Lucy Lewis

Jefferies International Limited                                    [phone]
Gary Gould
Alex Collins

NOTES TO EDITORS:

The Renewables Infrastructure Group Limited (TRIG)

TRIG is a leading renewable energy infrastructure company delivering long-term, stable dividends from a diversified portfolio of onshore wind and solar photovoltaic projects in the UK and Northern Europe. The Company is seeking to provide investors with long-term, stable dividends, while preserving the capital value of its investment portfolio through re-investment of surplus cash flows after payment of dividends. TRIG is targeting an initial annualised dividend of 6 pence per Ordinary Share for the period from the Initial Public Offering to 30 June 2014 and aims to increase this dividend progressively thereafter in line with inflation over the medium term.

TRIG currently owns a portfolio of 27 wholly-owned assets in the UK, France and the Republic of Ireland, including the three acquisitions announced today. 11 of the assets are solar PV parks and 16 of the assets are onshore wind farms. The Group is seeking further suitable investment opportunities which fit its stated Investment Policy.

Further details can be found on TRIG's website at www.trig-ltd.com.

Investment Manager

TRIG's Investment Manager is InfraRed Capital Partners Limited (InfraRed). InfraRed is an independent investment business, managing a range of infrastructure and real estate funds and investments. It has a strong record of delivering attractive returns for its investors, with total equity under management of more than US$ 7 billion.  

InfraRed currently has staff of over 100 employees and partners, based mainly in offices in London and with smaller offices in Paris, Sydney, Hong Kong and New York. The infrastructure investment team within the InfraRed Group currently consists of over 50 investment professionals, all of whom have an infrastructure investment background and a broad range of relevant skills, including private equity, structured finance, construction, renewable energy and facilities management.

Since 1998, InfraRed has launched 15 funds including two companies listed on the London Stock Exchange:  HICL Infrastructure Company Limited (HICL) and The Renewables Infrastructure Group Limited (TRIG). To date, six of these funds have been completely or materially realised.

The InfraRed Group has a long and successful proven track record in sourcing, structuring, acquiring, managing and financing infrastructure equity investments. It has been responsible for over 160 infrastructure equity investments for the InfraRed Group (including predecessor organisations) and its funds to date.

InfraRed Capital Partners Limited is authorised and regulated by the Financial Conduct Authority.

Operations Manager

The Operations Manager of the Group is Renewable Energy Systems Limited (RES). RES is one of the world's leading renewable energy developers, with extensive experience in developing, financing, constructing and operating renewable energy infrastructure projects globally across a wide range of low carbon technologies including wind, solar and biomass.

RES has been at the forefront of wind energy development for over 30 years.  Since incorporation, RES has developed and/or constructed more than 140 individual wind farms and PV parks around the world with a combined capacity of over 8,000 MW. 

In recognition of extraordinary business success in growing revenues from international markets, RES was awarded its second Queen's Award for Enterprise in 2013, this time for International Trade. Today, projects developed and/or built by RES are contributing to meeting the needs of a rapidly-evolving energy market and, in doing so, are actively contributing to a more sustainable world.

RES's global headcount totals over 1,000 staff based in thirteen countries across five continents.

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