Acquisition of 34MW Operational Rooftop portfolio
13 September 2023
LEI: 213800IE1PPREDIIZB62
Atrato Onsite Energy plc
(the "Company")
ACQUISITION OF A 34MW OPERATIONAL ROOFTOP SOLAR PORTFOLIO
Atrato Onsite Energy plc (LSE: ROOF), the investment company focusing on clean energy generation, is pleased to announce that it has entered into a share purchase agreement to acquire a fully operational portfolio of rooftop solar assets with a total value of £77.3m (the "Transaction").
The portfolio comprises 34MW of solar PV systems situated on residential rooftops across the UK. The portfolio benefits from payments pursuant to the government's feed-in-tariff ("FIT") scheme, payable directly to the Company by the respective utility companies. The portfolio is being acquired from a fund managed by Federated Hermes Infrastructure, with a financial effective date of 31st December 2022 and hence the Company will benefit from the operational cashflows generated during the year to date. Completion of the Transaction is expected to take 6 weeks.
The FIT contracts have a 12-year weighted average unexpired term and benefit from annual, uncapped, RPI uplifts, with minimal exposure to wholesale power prices. The Transaction includes £38.7m of existing fixed rate project finance debt. The cost of debt is 2% and the existing project finance within the structure amortises over the remaining 12-year year FIT period.
The Company and the Investment Adviser believe this portfolio to be a highly accretive addition to the Company's portfolio of solar assets due to its attractive return profile, with revenue streams underpinned by government backed income and 100% uncapped RPI inflation linkage.
The portfolio is expected to generate 30GWh of clean energy annually, providing 5,800 tonnes CO2 emissions saving per annum, equivalent to powering 10,000 UK homes or planting 230,000 trees.
Gurpreet Gujral, Managing Director of Atrato Partners, the Investment Adviser to the Company said:
"We are delighted to have had the opportunity to acquire this significant rooftop portfolio which has strong fundamentals and fits well into our current portfolio. The acquisition will provide immediate, long-term, highly contracted cash flows with 100% uncapped RPI linkage and UK government backing."
ENQUIRIES
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Atrato Partners Gurpreet Gujral Christopher Fearon
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+44 (0)77 959 75560 |
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Berenberg Gillian Martin Ben Wright Dan Gee-Summons
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+44 (0)20 3207 7800 |
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Kaso Legg Communications Charles Gorman Charlotte Francis
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atrato@kl-communications.com +44 (0)20 3995 6673
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Notes to Editors
Atrato Onsite Energy plc (LSE: ROOF) is an investment company specialising in clean energy generation with 100% carbon traceability. The Company focuses on UK solar, helping its clients achieve net zero and reduce their energy bills.
The Company aims to provides investors with attractive capital growth and long dated, index-linked income, targeting a 5% dividend yield and a NAV total return of 8 - 10%(1). Its shares were admitted to trading on the premium segment of the Main Market of the London Stock Exchange on 23 November 2021. Atrato Partners Limited is the Company's Investment Adviser.
Further information is available on the Company's website, www.atratoroof.com.
(1) There is no certainty that these targets will be achieved.
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