In QuotedData’s morning briefing 26 June 2023:
- US Solar Fund (USF) has announced that it has reached the financial close on the sale of 50% of its interest in the 200MWDC Mount Signal site to MN8 Energy (formerly known as Goldman Sachs Renewable Power), with the binding sale agreement having been made in April 2023. MN8 will pay $52.2m, plus a non-refundable option fee of $1 million paid in 2022. $4.5m of the proceeds has been used to repay the full drawn balance of USF’s revolving credit facility. The sale implies a gross return of approximately 10% per annum, with USF having acquired up to 50% of MS2 from New Energy Solar in December 2020.
- Ecofin US Renewables Infrastructure Trust (RNEW) has provided an update to its assets in Texas, following a recent tornado. RNEW’s 59.8 MW Whirlwind Energy wind farm is unable to resume operations until the Matador substation, through which Whirlwind transmits electricity, is rebuilt following the severe damage incurred during the tornado. Due to the outage, RNEW has declared a force majeure event with Whirlwind’s offtaker, Austin Energy. As at 31 March 2023, Whirlwind represented 38% of RNEW’s NAV. RNEW is still looking to implement a timetable to remedy the outage. Regardless of RNEW’s ability to recoup potential losses resulting from the tornado under its insurance policies or other contractual arrangements, it expects the outage to have a material short term impact on cash flows.
- AEW UK REIT (AEWU) has sold two industrial assets – Euroway Trading Estate, Bradford and Lockwood Court, Leeds – for combined proceeds of £16.1m. This reflects a blended net initial yield (NIY) of 6.2% and a weighted average premium to acquisition price of 31.2%. Both sales realise significant profit for AEWU’s shareholders. For Euroway Trading Estate and Lockwood Court respectively, their sales prices exceeded the most recent valuation prior to going under offer by 17.3% and 9.7%, as well as their acquisition prices by 30.3% and 31.8%. Reinvestment of the sales proceeds into comparatively higher yielding pipeline assets will be accretive to the company’s earnings.