Octopus Renewables (ORIT) has completed the acquisition of a 100% interest in a portfolio of solar photovoltaic (PV) assets situated across the UK for an initial cash consideration of £144.3m. This portfolio forms part of the pipeline assets disclosed in the company’s prospectus dated 19 November 2019 and was acquired from an entity managed by ORIT’s manager.
Today’s investment amounts to approximately 42% of the net IPO proceeds and is the second in a pipeline of opportunities that the company’s manager, Octopus Investments, is currently pursuing on its behalf.
The portfolio consists of 8 fully operational solar PV assets, with a capacity of 122.8MW, that qualify under the renewable obligation certificate (ROC) regime. The assets began operations between 2013 and 2015 and currently have an average remaining life of 23.5 years. The final consideration may be increased by up to £5.4m contingent on the compan securing extensions to the current lease periods. ORIT says it will receive the economic benefit of all cash flows from the portfolio from 1 January 2020.
Portfolio brings 122.8 MW total capacity
|
Site Name |
ROC Banding |
Capacity (MW) |
Location |
|
Mingay |
1.6 |
19.32 |
Wilburton, Cambridgeshire |
|
Abbots |
1.6 |
24.67 |
Abbots Ripton, Cambridgeshire |
|
Ermine |
1.4 |
32.45 |
North Rauceby, Lincolnshire |
|
Westerfield |
1.4 |
12.98 |
Brize Norton, Oxfordshire |
|
Chisbon |
1.4 |
12.34 |
St. Osyth, Essex |
|
Ottringham |
1.4 |
6.07 |
Hull, Yorkshire |
|
Wiggin Hill |
1.4 |
11.44 |
St. Ives, Cambridgeshire |
|
Penhale |
1.6 |
3.53 |
St. Issey, Cornwall |
|
|
Total |
122.80 |
|
“I am delighted to announce the acquisition of this portfolio of ROC subsidised UK solar farms. This investment marks a significant step towards building a diversified portfolio of renewable energy assets aimed at reducing the impacts of climate change. This particular investment is expected to produce enough electricity each year to service the equivalent of 38,000 UK homes.”
Chris Gaydon, investment director at the manager, commented:
“Following on from the acquisition of the Ljungbyholm wind farm which we announced on 10 March 2020 (we covered this here), we are pleased to announce our second acquisition on behalf of Octopus Renewables Infrastructure Trust. As per our strategy of acquiring a diversified portfolio of assets, this gives us exposure to the UK market and the solar industry. We have now deployed 59% of the funds raised at IPO.
“As part of our ongoing process, we have assessed the possible impact of the Covid-19 pandemic on the company’s assets and pipeline and at present we do not expect there to be any material impact on asset performance or deployment of the balance of the IPO proceeds. For our construction projects, such as the Ljungbyholm Wind Farm, we are in close contact with our partners and have made allowances for construction delays in our investment case, in addition to other commercial protections implemented specifically with Covid-19 in mind. We will continue to keep the situation under review.
“We continue to see significant opportunities for further acquisitions and we look forward to updating shareholders with our progress.”
About ORIT
ORIT, part of Octopus Investments and the wider Octopus Group, is a specialist clean energy investment manager with a mission to accelerate the transition to a future powered by renewable energy. Since 2010, Octopus Renewables has, on behalf of its clients, invested in a diverse portfolio of assets with a capacity of over 2.5GW and is now the largest commercial solar investor in Europe and a leading UK investor in onshore wind. Octopus Renewables is co-led by Matt Setchell and Alex Brierley and has over 70 employees in the UK and Australia.
ORIT: Octopus Renewables completes UK solar deal for an initial £144.3m