Sale of Swedish Onshore Wind Farm
18 July 2024
LEI: 213800B81BFJKWM2JV13
Octopus Renewables Infrastructure Trust plc
("ORIT" or the "Company")
Sale of Swedish Onshore Wind Farm
Octopus Renewables Infrastructure Trust plc announces that, as part of its capital recycling programme, it has entered into a conditional agreement to sell the Ljungbyholm onshore wind farm in Sweden to a German institutional investor for total consideration of approximately €74 million (the "Transaction"). The sale price is in line with the Company's valuation of Ljungbyholm as at 31 March 2024 and will realise an IRR of approximately 11% over the lifetime of ORIT's investment, with the net proceeds expected to be used predominantly to repay part of ORIT's short-term debt facility. Completion of the Transaction is subject, inter alia, to foreign direct investment approval by the Swedish Inspectorate for Strategic Products, which is expected later this year.
ORIT acquired the 48 MW wind farm at pre-construction stage in March 2020, investing c. €68m in the project. The Investment Manager, Octopus Energy Generation managed the construction phase, successfully bringing the wind farm into operation in June 2021.
The Transaction forms part of the Company's capital recycling programme, and follows the sale of two Polish onshore wind assets in December 2023 and the divestment of an option over a Spanish solar PV project in January 2024. Upon completion of the Transaction, the capital recycling programme will have generated approximately £159 million. Other capital recycling projects are in progress and the Company will provide further updates when appropriate.
ORIT was advised on the Transaction by Newsec Energy Transition AB.
Phil Austin, Chairman of Octopus Renewables Infrastructure Trust plc, commented: "We are pleased to enter this transaction, which is another key part of ORIT's capital recycling programme. The agreed price further supports the Company's valuations, and once the Transaction is completed it will enable us to reduce our short-term debt which, as we have previously communicated, is a key objective for us at this time. Ljungbyholm was the Company's first investment following ORIT's IPO, and the exit further demonstrates our Investment Manager's ability to manage the construction and operation of new renewable energy assets, which helps to drive the transition to net zero."
For further information please contact:
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Octopus Energy Generation (Investment Manager) Chris Gaydon, David Bird
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Via Buchanan |
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Peel Hunt (Broker) Liz Yong, Luke Simpson, Huw Jeremy (Investment Banking) Alex Howe, Chris Bunstead, Ed Welsby, Richard Harris, Michael Bateman (Sales)
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020 7418 8900 |
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Burson Buchanan (Financial PR) Charles Ryland, George Beale, Samuel Adams
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020 7466 5000 |
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Apex Listed Companies Services (UK) Limited (Company Secretary) |
020 3327 9720 |
Notes to editors
About Octopus Renewables Infrastructure Trust
Octopus Renewables Infrastructure Trust ("ORIT") is a premium-listed, closed-ended 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. As an impact fund, ORIT is helping accelerate the transition to net zero by investing in green energy, whilst also contributing to a broader set of UN Sustainable Development Goals through its impact initiatives. ORIT's investment manager is Octopus Energy Generation.
Further details can be found at www.octopusrenewablesinfrastructure.com
About Octopus Energy Generation
Octopus Energy Generation is driving the renewable energy agenda by building green power for the future. Its specialist renewable energy fund management team invests in renewable energy assets and broader projects helping the energy transition, across operational, construction and development stages. The team was set up in 2010 based on the belief that investors can play a vital role in accelerating the shift to a future powered by renewable energy. It has a 13-year track record with approximately £6.7 billion of assets under management (AUM) (as of 31 March 2024) across 20 countries and total 4.0GW. These renewable projects generate enough green energy to power 2.5 million homes every year, the equivalent of taking over 1.5 million petrol cars off the road. Octopus Energy Generation is the trading name of Octopus Renewables Limited.
Further details can be found at www.octopusenergygeneration.com
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