Gresham House Energy Storage Fund (GRID) has completed an £8.6m third-party equity raise for Glassenbury Battery Storage Ltd, the special purpose vehicle which owns its Glassenbury A and B projects in Kent. The capital will fund the augmentation of the 50MW projects from 38MWh to 110MWh, increasing duration to 2.2 hours.
The equity has been issued at project NAV to UAB E Energy Invest (EEI), the investment vehicle of the Strioga Family Foundation. Post-transaction, EEI holds 35% of Glassenbury, with GRID retaining the remaining 65%. GRID notes this is the first equity funding of its kind for a listed battery storage fund at the project level.
Construction is expected to begin in July 2025, with completion targeted for December. GRID estimates the augmentation will increase its share of the project’s EBITDA by approximately 22% over the asset’s life. The pre-money valuation used for the deal matches the NAV as at 31 December 2024 and is reflected in GRID’s audited NAV. The uplift in value from the deal will be incorporated into GRID’s 30 June 2025 NAV, due in September.
The transaction is seen as a template for future augmentations. GRID’s manager expects to undertake a further seven project upgrades once the company’s refinancing is completed. These are anticipated to add meaningfully to NAV and portfolio-level EBITDA.
[QD comment Matthew Read: This is an important strategic milestone for GRID and potentially a model for future activity in the listed battery storage space. By raising third-party equity at project NAV, GRID has effectively demonstrated external validation of its asset valuations while also unlocking capital to enhance the earnings profile of one of its shorter-duration assets.
With battery duration now a key differentiator in capturing grid revenues, extending Glassenbury’s duration to over two hours should materially improve its revenue potential. If further augmentations can be similarly funded post-refinancing, as indicated, this could be a significant driver of NAV and earnings growth across the portfolio.]
