Octopus Renewables wraps up sale of 48-MW Swedish wind farm

Octopus Renewables Infrastructure Trust plc (LON:ORIT) announced today that it has completed the sale of the operational 48-MW Ljungbyholm onshore wind farm in Sweden to a fund managed by DWS Group (ETR:DWS).

The price tag of the deal, sealed in July, stood at EUR 73.7 million (USD 82.2m). ORIT bought the project for EUR 68 million during pre-construction phase in March 2020.

The divestment is expected to deliver an internal rate of return (IRR) of 11.3% over the lifetime of the company's investment. The proceeds from the transaction represent a premium of GBP 1.4 million (USD 1.85m/EUR 1.65m) to the prevailing valuation of Ljungbyholm prior to agreeing the sale, ORIT noted in the statement.

The divestment proceeds will go for partial debt repayment which will result in the reduction of the company’s short-term debt to about GBP 134 million.

The deal with DWS comes as part ORIT's capital recycling programme. It follows the sale of two Polish onshore wind assets in December 2023 and the divestment of an option over a Spanish solar project in January 2024.

(EUR 1 = USD 1.116)

(GBP 1 = USD 1.322/EUR 1.184)

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