Octopus Renewables Infrastructure Trust (ORIT) has completed the sale of the Krzecin and Kuslin onshore wind farms in Poland to an affiliate of Orlen.
The two sites have a combined capacity of 59MW, generating enough green power for well over 100,000 homes, and avoiding the equivalent of 150,000 tonnes of carbon dioxide emissions, every year.
Completion of the Transaction was subject to the receipt of competition approvals, which are now in place, ORIT said.
In total, following repayment of asset related debt and termination of FX and hedging arrangements, ORIT will receive net proceeds from the transaction of approximately £92m, which is at the top end of the company’s expectations upon entering into the sale agreement in October 2023.
This represents a 21% premium over the holding value of the Krzecin and Kuslin wind farms of £76m as at 30 September 2023, and a positive impact on NAV of approximately +2.8 pence per Ordinary Share, ORIT said.
Completion of the transaction will realise an IRR of around 30% over the lifetime of ORIT’s investment.
The net proceeds will predominantly be used to repay ORIT’s short-term debt facilities.
ORIT acquired the Krzecin and Kuslin wind farms when they were in the construction phase in October 2021.
The company managed the construction phases, successfully bringing the wind farms into operation in 2022.
This accretive sale is part of the company’s strategy to release capital through the sale of a small number of assets.
Phil Austin, chairman of Octopus Renewables Infrastructure Trust, said: “We are pleased to deliver the first result from our capital recycling programme with the successful sales of the Polish wind farms.
“This transaction is an excellent result for the Company, delivering a strong uplift to the Company’s NAV.
“It demonstrates our Investment Manager’s ability to manage the construction of new renewable energy assets, which help to accelerate the transition to net zero and also to deliver capital growth for shareholders through active asset and portfolio management.”