Acquisition of a further two UK solar parks
27 March 2014
The Renewables Infrastructure Group Limited
("TRIG" or the "Company" and together with the holding company subsidiaries, the "Group")
Acquisition of a further two UK solar parks
· Expansion of the TRIG portfolio with the addition of two solar photovoltaic (PV) parks in Devon and Essex with combined generating capacity of approximately 30.4MW for an aggregate consideration of between £34.5 million and £37 million
· The acquisitions further diversify TRIG's portfolio, with solar now representing 8 out of 22 investments, in line with the growth strategy stated at IPO to acquire additional projects across target geographies and renewable energy technologies
· The transaction has been funded from the Group's acquisition facility (expected to be repaid from proceeds of the C Share issue announced on 10 March 2014) and from the Company's existing cash resources
Richard Crawford from InfraRed Capital Partners, TRIG's Investment Manager, said: "These two large solar projects nearly double the generating capacity of TRIG's solar PV portfolio in the UK and France to approximately 62MW, providing further balance and diversification to the TRIG portfolio."
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TRIG today announces that, in line with the intentions set out in the prospectus for the Placing, Open Offer and Offer for Subscription published on 10 March 2014, it has invested in two large-scale ground-mounted solar PV generating projects, both on agricultural sites in the South of England. The maximum investment consideration is approximately £37 million, subject to certain value protections and subject to a minimum price of approximately £34.5 million. The investments are without project-level debt, although debt may be introduced in due course to optimise the capital structure.
Tamar Heights Solar Park, located near Barnstaple in Devon, has been recently connected to the grid with a generating capacity of approximately 11.8MW. A 100% interest has been acquired in the project.
The second project is the Stour Fields Solar Park, located near Colchester in Essex. This site is expected to be connected shortly with a generating capacity of approximately 18.7MW. To accommodate the requirements of the vendors, an initial 50% interest in the plant has been acquired and the Group has entered into a put and call option for the acquisition of the remaining 50% which will complete in May 2014. The consideration sum referred to above includes the full 100% interest.
Both projects have been acquired from a group of private developers, are being constructed by a specialised German EPC contractor with a significant track record in solar PV and incorporate modules supplied by Hanwha SolarOne, a leading solar PV module manufacturer. The Devon site is already connected and the Essex site is expected to be connected by 31 March 2014 to qualify under the UK's support banding of 1.6 renewables obligation certificates (ROCs) per MWh. A price reduction has been agreed in the event this site is connected under the subsequent regime of 1.4 ROCs per MWh, due to take effect from 1 April 2014. Suitable power purchase agreements are being negotiated. The expected asset lives are 25 years from the commencement of operations, with site leases also for 25 years.In addition, TRIG has an option to extend the lease at Stour Fields Solar Park by up to a further five years.
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Richard Crawford
Matt Dimond
Phil George
Tulchan Communications +44 (0) 20 7353 4200
Martha Walsh
Victoria Huxster
Canaccord Genuity Limited +44 (0) 20 7523 8000
Andrew Zychowski
Lucy Lewis
Jefferies International Limited +44 (0) 20 7029 8000
Gary Gould
Alex Collins
Stuart Klein
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 and aims to increase this dividend progressively in line with inflation over the medium term.
TRIG currently owns a portfolio of 22 wholly-owned assets in the UK, France and the Republic of Ireland, including the two acquisitions announced today. Eight of the assets are solar PV parks and 14 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 130 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.
Ends
This information is provided by RNS
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