Link to full RNS here

 

Phase II of the Programme:

·    Whitecross, located in Lincolnshire, UK, is a 35.22MW utility-scale solar asset that was developed as part of the Company’s self-developed project pipeline and energised late last year.

·     A third-party buyer, managed by Downing LLP, purchased Whitecross through a competitive sales process.

·     The sale of Whitecross raised £27m (the “Transaction”).

·    The Transaction represents a 1.3x Multiple on Invested Capital, an attractive 14% unlevered IRR, and a 14% premium to the holding value as at 31 March 2024.

·    The Transaction is Net Asset Value (“NAV”) accretive to shareholders and will generate an estimated uplift of 0.57p which will be reflected in the Company’s NAV per share as at 30 June 2024.

·    The Investment Manager (“NEC”) secured potential for further consideration of £1m payable in the event the project benefits from planned changes to network charging before 31 December 2028, bringing the total transaction value to £28m.

·    The total transaction value represents a 1.3x Multiple on Invested Capital, an attractive 15% unlevered IRR, and a 18% premium to the holding value as at 31 March 2024.  It would also generate an estimated uplift of 0.70p if reflected in the Company’s NAV per share as at 30 June 2024.

 

Use of proceeds:

·    Proceeds from the Transaction will be used to reduce the Company’s drawn short-term debt via its Revolving Credit Facilities.

 

Further updates to the Programme:

The Company has successfully sold c.96MW from its 246MW Programme to date, equivalent to c.10% of the Company’s total installed capacity. The remaining 150MW in the Programme continues to progress through a competitive sales process to third-party buyers.  The Company will publish further updates about Phase III of the Programme in due course.

 

Subsidy-free solar asset	Installed Capacity	Type	Status	Price	NAV uplift	Premium	IRR
Hatherden	60MW	Ready-to-build	Sold in Phase I	£15.2m	1.27p 1	100%	57%
Whitecross	35.22MW 2	Operational	Sold in Phase II	£27.0m 3	0.57p 4	14% 3	14% 3
The Grange	50MW	Operational	Third-party competitive sales process	n/a	n/a	n/a	n/a
South Lowfield	50MW	Operational	Third-party competitive sales process	n/a	n/a	n/a	n/a
Staughton	50MW	Operational	Third-party competitive sales process	n/a	n/a	n/a	n/a

 

 

Footnotes:

(1)  Realised in NAV as at 31 December 2023.

(2)  Originally included in the Capital Recycling Programme with a 36MW design capacity, 35.22MW is the final installed capacity.

(3)  Excluding deferred consideration. Including deferred consideration: Price would be £28m, Premium to holding value would be 18%, and IRR would be 15%.

(4) Estimated uplift which will be reflected in the Company’s NAV as at 30 June 2024 excluding deferred consideration. Including deferred consideration, it would generate an estimated uplift of 0.70p if reflected in the Company’s NAV per share as at 30 June 2024.