UK asset management company Gresham House Plc (LON:GHE) announced on Thursday a plan to launch and list in London an energy storage systems (ESS) fund.
The Gresham House Energy Storage Fund is seeking to raise gross proceeds of up to GBP 200 million (EUR 226.9m) from its initial public offering (IPO) and a placing programme to follow. The IPO and admission to trading on the Main Market of the London Stock Exchange, within the Specialist Fund Segment, is planned for early November 2018.
A formal roadshow has already commenced.
The fund will invest in utility-scale ESS to support grid stability and the growth of intermittent renewables in the UK. The country has reached over 40 GW of renewable energy capacity, or more than 30% of the mix in the first quarter of 2018. This is set to jump by 50% by 2023.
Proceeds from the IPO are to be invested in a seed portfolio of five operational sites with a combined capacity of 70 MW. The fund will also have exclusivity over an additional 132 MW of ready-to-build projects. More acquisitions are being negotiated. The fund will be able to deploy over 200 MW within 12 months of the listing.
"ESS will offer infrastructure and renewables investors a diversified and robust source of income, independent of renewables subsidies or the absolute level of power prices," Gresham said.
The New Energy division of Gresham House Asset Management, specialising in renewable and storage asset management, will be in charge of the fund. The target dividend is GBP 0.07, GBP 0.045 in the first year.
(GBP 1.0 = EUR 1.13)
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