(Alliance News) - Octopus Renewables Infrastructure Trust PLC on Friday said it will sell its Krzecin and Kuslin wind farms in Poland to an unnamed Orlen SA affiliate for between GBP88 million and GBP92 million.
The London-based investor in electricity generation assets said the net proceeds represent a 14% to 19% premium over the holding value of the wind farms of GBP77 million as at June 30.
Upon completion of the transaction, Octopus expects an internal rate of return of 25% to 30%.
Orlen is a Plock, Poland-based multi-energy company. It has agreed to provide a loan to repay the existing bank debt secured against the wind farms.
Octopus Chair Phil Austin said: "ORIT is committed to making a positive impact through investing in renewable assets which help accelerate the transition to net-zero. Building new wind farms, like these two in Poland, has brought more vital green energy onto the system. The company has demonstrated its ability to manage the construction of these renewable energy projects, successfully delivering capital growth for investors, proving its ability to sell assets at an attractive valuation.
As the company's portfolio becomes increasingly weighted towards operational assets, selling some of these now and paying down short term debt will then give ORIT the ability to explore new opportunities to build more green energy projects. This creates even greater scope for capital growth alongside ORIT's income, and to continue making a difference by rapidly accelerating the green energy transition."
Shares in Octopus were up 5.1% at 84.50 pence each in London on Friday morning.
By Sabrina Penty, Alliance News reporter
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Octopus Energy (ORIT)