Octopus Renewables Infrastructure Trust plc announces that it has completed the sale of the Ljungbyholm onshore wind farm in Sweden to DWS Infrastruktur Europa, a DWS core infrastructure fund (the "Transaction"). The sale price of €73.7 million delivers an IRR of 11.3% over the lifetime of the Company's investment. The proceeds represent a premium of £1.4 million to the prevailing valuation of Ljungbyholm prior to agreeing the sale, of which £0.8 million was incorporated into the Net Asset Value as at 30 June 2024, with the additional c.£0.6 million to be reflected in the 30 September 2024 Net Asset Value, which will be published in early November 2024.

The proceeds of the Transaction will predominantly be used to partially repay the Company's short-term debt facility, following which short-term debt is expected to reduce to approximately £134 million and total gearing is expected to fall from 46% as at 30 June 2024 to 43%.(1)

ORIT acquired the 48 MW wind farm at pre-construction stage in March 2020, investing c. €68 million 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 is part of the Company's previously announced 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. Post the Transaction, the capital recycling programme has to date generated gross proceeds of approximately £159 million.

Phil Austin, Chairman of Octopus Renewables Infrastructure Trust plc, commented:
"We are pleased to complete the latest phase of ORIT's capital recycling programme, securing an attractive sale price at a premium to the asset's holding value and which once again provides support to the Company's valuations. The proceeds enable ORIT to repay a significant proportion of its short-term debt, which has been a key focus for the Company. Completion of the sale also further demonstrates our Investment Manager's ability to manage the construction and successful operation of renewable energy assets."

(1) Prior to approximately £30 million of committed investments due to be made in 2024, the majority of which relates to the acquisition of the fifth site at the Ballymacarney solar complex in Ireland

KeyFacts Renewable Energy Directory: Octopus Renewables