Divestment of French wind assets
10 January 2022
JLEN Environmental Assets Group Limited
("JLEN" or the "Company")
Divestment of French wind assets
JLEN, the listed environmental infrastructure fund, is pleased to announce that it has reached an agreement for the sale of its two French onshore wind farms, Parc Éolien Le Placis Vert and Energie Eolienne de Plouguernevel to Volta Developpement, for a total consideration of €5.9 million. This is in-line with the valuation as at 30 September 2021 although it represents a 25% uplift to the value of the assets at 30 June 2021, the last valuation prior to receipt of firm bids. Completion of the disposal is subject only to a customary condition precedent.
The wind farms have been operational since 2016 and are located in the Côtes-d'Armor region of Brittany in north-western France. They were acquired by JLEN in 2016 from Energiequelle, in an operational state and have a combined generating capacity of 8MW. Both projects benefit from a 15-year Feed-in-Tariff.
This is the Company's first divestment and while JLEN's strategy is to hold its assets over the long-term, it will consider opportunities to generate value for shareholders through the divestment of certain assets as they arise. These opportunities will be evaluated against the Company's strategy of diversification and the ability of the asset to generate stable financial returns.
The proceeds of the sale will be used to repay amounts outstanding under its revolving credit facility which is available to meet existing commitments and fund further pipeline projects.
Richard Morse, Chairman of JLEN, said:
"We are pleased to have reached an agreement to sell JLEN's French wind assets at an uplift to the valuation prior to the receipt of firm bids. While the scale of the valuation uplift on disposal cannot necessarily be assumed to apply across the entire portfolio, we believe that it demonstrates our conservative approach to valuations. The Board remains open to further selective divestments in the future to recycle capital and to demonstrate the underlying value of JLEN's portfolio of environmental infrastructure assets."
For further information, please contact:
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Foresight Group Chris Tanner Chris Holmes
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+44(0)20 3667 8100 |
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Winterflood Investment Trusts Neil Langford Chris Mills
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+44(0)20 3100 0000
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SEC Newgate Elisabeth Cowell Megan Kovach
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+44(0)20 3757 6882 |
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Sanne Fund Services Matt Falla Gemma Woods |
+44(0)1481 755530 |
About JLEN
JLEN's investment policy is to invest in a diversified portfolio of Environmental Infrastructure. Environmental Infrastructure is defined by the Company as infrastructure assets, projects and asset-backed businesses that utilise natural or waste resources or support more environmentally friendly approaches to economic activity, support the transition to a low carbon economy, or which mitigate the effects of climate change. Such investments will typically feature one or more of the following characteristics:
· long-term, predictable cash flows, which may be wholly or partially inflation-linked;
· long-term contracts or stable and well-proven regulatory and legal frameworks; or
· well-established technologies and demonstrable operational performance.
JLEN's aim is to provide investors with a sustainable, progressive dividend per share, paid quarterly and to preserve the capital value of the portfolio over the long term on a real basis. The target dividend for the year to 31 March 2022 is 6.801 pence per share. The dividend is payable quarterly.
Further details of the Company can be found on its website www.jlen.com.
LEI: 213800JWJN54TFBMBI68
(1) These are targets only and not profit forecasts. There can be no assurance that these targets will be met or that the Company will make any distributions at all.
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