March 20 (Renewables Now) - Octopus Renewables Infrastructure Trust plc has completed the acquisition of a 122.8-MW portfolio of solar parks in the UK operating under the country’s Renewable Obligation Certificate (ROC) scheme.
This is the fund’s second acquisition since its GBP-350-million (USD 412.5m/EUR 384.3m) initial public offering (IPO) in London in December 2019. With it, it has deployed around 42% of the net proceeds raised in the IPO.
The closed end investment company has paid an initial cash amount of GBP 144.3 million for a 100% stake in eight assets, it said in a bourse filing on Friday, adding that it will receive the economic benefit of all cash flows from the newly-acquired portfolio from January 1, 2020. The final consideration of the purchase may be increased by up to GBP 5.4 million, conditional on securing extensions to the current lease periods.
The portfolio was purchased from an entity managed by Octopus Renewables’ investment manager, Octopus Investments Ltd. The eight photovoltaic (PV) parks in it were brought online between 2013 and 2015 and have an average remaining life of 23.5 years. All of them are part of a pipeline of assets identified in the company’s IPO prospectus.
Commenting on the COVID-19 outbreak, the UK company said that the coronavirus pandemic is not expected to have any material impact on the performance of its assets or the deployment of the remaining IPO funds.
(GBP 1.0 = USD 1.178/EUR 1.098)