March 10 (Renewables Now) - Octopus Renewables Infrastructure Trust plc on Tuesday said it has agreed to purchase a construction-ready wind project in South Sweden with a capacity of 48 MW.
This will be the closed end investment company's first acquisition since its initial public offering (IPO).
As part of the deal, expected to close shortly, the trust will pay EUR 68 million (USD 77m) in cash for 100% of the Ljungbyholm Wind Farm to Swedish renewables developer OX2. The amount includes future construction payments.
Construction of the wind farm, to be located in the Kalmar municipality, is expected to start soon and be completed in the middle of 2021, while the wind facility is expected to be fully commissioned in the second half of 2021. An affiliate of OX2 will build the wind park, which will include 12 turbines.
The trust expects to complete the construction phase of the project without debt finance at the project level.
Octopus Renewables invests in operating or shovel-ready renewable energy assets in Europe, including the UK, and Australia, with a focus on onshore wind farms and solar photovoltaic (PV) plants. The trust started trading on the London Stock Exchange in December, after an IPO that raised GBP 350 million (USD 457m/EUR 403m) in gross proceeds. The acquisition is the first in a pipeline of opportunities to be pursued by Octopus.
(EUR 1.0 = USD 1.135) (GBP 1.0 = USD 1.306/EUR 1.152)