Octopus Renewables sells two Polish wind farms
By Iain Gilbert
Date: Friday 06 Oct 2023
(Sharecast News) - Investment trust Octopus Renewables has agreed to sell its Krzecin and Kuslin onshore wind farms in Poland to an affiliate of Orlen.
Octopus Renewables said on Friday that it will receive net proceeds, following the repayment of asset level debt and termination of hedging arrangements, of between PLN 470.0 and PLN 490.0 (£88.0m and £92.0m), representing a 14% to 19% premium over the holding value of the Krzecin and Kuslin wind farms on 30 June 2023.
Once the deal completes, Octopus expects to realise an internal rate of return of 25-30% over the lifetime of its investment in the assets, which it bought during the construction phase in October 2021.
Octopus added that the accretive sale demonstrates the strength of its net asset value and forms part of its strategy to release capital through the sale of a small number of assets. The proceeds will initially be used to repay short-term debt facilities and may subsequently be reinvested in projects.
Chairman Phil Austin said: "Building new wind farms, like these two in Poland, has brought more vital green energy onto the system. The company has demonstrated its ability to manage the construction of these renewable energy projects, successfully delivering capital growth for investors, proving its ability to sell assets at an attractive valuation."
As of 0855 BST, Octopus shares were up 3.68% at 83.36p.
Reporting by Iain Gilbert at Sharecast.com
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