Acquisition of 2 UK Solar Parks by TRIG
Expansion of the TRIG portfolio with the addition of solar photovoltaic parks in Somerset and the Isle of Wight for £21m
The acquisitions reinforce the benefits of diversification, with solar now representing six out of 20 assets in the TRIG portfolio, furthering the growth strategy stated at IPO to acquire additional investments across target geographies and renewable energy technologies
Transaction has been funded from proceeds of the equity tap issue that took place on 21 November 2013 and from the Company’s existing cash resources
Richard Crawford, Director, InfraRed Capital Partners Limited, TRIG’s Investment Manager, said:
"The team is delighted to announce these additions, which further enhance the diversification of the TRIG portfolio in line with the investment objectives of providing investors with long-term, stable dividends and preserving capital value. We see a good pipeline of available assets in both solar PV and onshore wind in the UK and across Northern Europe, enabling further build-out of TRIG’s portfolio in due course.:
The Renewables Infrastructure Group Limited is pleased to announce that the Group has acquired 100% interests in two large-scale ground-mounted solar photovoltaic generating plants, both on agricultural sites in the South of England, for a total investment consideration of approximately £21m including the cost of a new extension to one of the plants. These solar parks have been acquired without project debt. The expected electricity production of the two assets combined is enough to cover the annual power consumption of approximately 3,700 UK households and avoid the emission of 12,000 tons of CO2 each year.
The first plant, the Parsonage Solar Park, is located near Ilminster in Somerset and is fully operational with generating capacity of 7MW. The plant has been acquired from a private construction capital fund managed by Adiant Capital Partners. Installation of the project was completed by Goldbeck Construction Limited, part of the Goldbeck contracting group based in Germany. The site was commissioned in July 2013, qualifying under the UK’s support banding of 1.6 Renewables Obligation Certificates (ROCs) per MW/h, and has a 3-year off-take agreement with GDF Suez Energy UK.
The second of these plants, the Marvel Farms Solar Park, is located on the Isle of Wight near Newport and has been acquired from a group of local private developers. With total generating capacity of 5MW, the project is comprised of two sections, an established operational site commissioned in 2011 and an extension to the site which is expected to be completed and commissioned over the coming weeks. Construction of the extension is being undertaken by Lark Energy, an experienced contractor in the U.K. solar market. The extension will benefit from a new 20-year feed-in tariff while the existing operational section has 23 years remaining on its original feed-in tariff at the considerably higher rate per MW/h applicable to plants commissioned in 2011. The operational plant has a 3-year off-take agreement with SSE Energy Supply (part of SSE Group). In addition, TRIG has secured an option to extend the initial 25 year site lease to a total of 40 years.