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Highlights
● Downing Renewables & Infrastructure Trust PLC enters exclusive discussions to divest its interest in the Gabrielsberget wind farm in Sweden.
● The proposed sale price is at a small premium to the carrying value as of June 30, 2024, with anticipated completion in Q4 2024.
● Proceeds from the sale will be allocated to further growth and reinvestment in the company’s hydropower portfolio.
Overview
Downing Renewables & Infrastructure Trust PLC (LSE:DORE) has announced that it has commenced exclusive discussions regarding the sale of its interest in the Gabrielsberget wind farm located in Sweden. The transaction is proposed at a price that offers a small premium over the carrying value recorded as of June 30, 2024. Completion of this transaction is anticipated in the fourth quarter of 2024, with an expected return equivalent to 14% of net asset value (NAV).
The Gabrielsberget wind farm was acquired by Downing in January 2022 for a total consideration that has since seen a significant uplift of 50% by June 30, 2024. This growth in valuation reflects the increasing demand and interest in renewable energy assets.
The proceeds from the sale are intended to support the company’s strategy for further growth and to facilitate reinvestment in its hydropower portfolio. This move aligns with Downing's commitment to expanding its renewable energy footprint and enhancing the quality of its asset base.
Tom Williams, Head of Energy and Infrastructure at Downing, emphasized that this transaction positions the company favorably to capitalize on a robust pipeline of both internal and external investment opportunities. The ongoing efforts to increase the quantity and quality of returns for shareholders remain a priority for the organization.
This strategic divestment not only aims to optimize the company’s portfolio but also underscores the focus on leveraging growth opportunities within the renewable energy sector. As the market for sustainable energy continues to evolve, Downing Renewables & Infrastructure Trust is poised to navigate this landscape effectively, enhancing its long-term operational and financial performance.
