Gresham House PLC Sale of 50MW grid level battery storage project (8483D)
November 02 2020 - 1:00AM
UK Regulatory
TIDMGHE
RNS Number : 8483D
Gresham House PLC
02 November 2020
2 November 2020
Gresham House plc
("Gresham House", "the Group" or "the Company")
Sale of 50MW grid level battery storage project
Gresham House, (AIM: GHE) the specialist alternative asset
manager, is pleased to announce that it has sold a further battery
storage project to Gresham House Energy Storage Fund plc (LSE:
GRID) on 30 October 2020.
The c.50MW battery-only project located near Thurcroft, to the
east of Rotherham (the "Project") was sold for a total enterprise
value of approximately GBP32.5 million (plus up to GBP0.75 million
of deferred contingent consideration) and is one of the exclusive
portfolio projects being developed by subsidiaries and
associates of Gresham House for sale to GRID.
Gresham House, through its wholly owned subsidiary Gresham House
Devco Limited and associate Noriker Power Ltd, made GBP1.7 million
of equity and loan investments in the Project. This investment will
return an initial net gain on sale of approximately GBP1.8 million
(after contractual and expected payments and transaction fees), of
which GBP0.8 million will be received within the next twelve
months. A further net deferred payment of up to GBP0.3 million,
which is conditional on performance, could be payable in up to
twelve months' time.
The investment in the Project is consistent with exceeding
Gresham House's 15% return on balance sheet capital threshold over
the medium term. After this sale, Gresham House has an exposure
of
GBP3.6 million in the remaining battery storage development
projects it has funded, which are in exclusivity with GRID and a
further 50MW disposal is expected to complete during 2020. Gresham
House continues to build and develop a pipeline of projects that
are expected to be transferred to GRID in 2020 and beyond.
Tony Dalwood, Chief Executive of Gresham House, said:
"It is pleasing to see GRID's expansion continue with this
acquisition, alongside the financial gain to Gresham House
shareholders from the development capital investment. As previously
demonstrated, we will use our balance sheet where appropriate to
scale our long-term asset management capability in renewable
infrastructure.
This is another example of our ongoing commitment to investing
in sustainable, resilient assets that deliver long-term value for
our clients and exceed return hurdles for shareholders."
- Ends -
For more information contact:
Gresham House plc
T ony Dalwood, Chief Executive Officer
Kevin Acton, Chief Financial Officer +44 (0)20 3837 6270
Houston - PR advisors
Alexander Clelland gh@houston.co.uk
Anushka Mathew +44 (0) 20 4 529 0549
Canaccord Genuity Limited - Nominated
Adviser and Joint Broker
B obbie Hilliam
Georgina McCooke +44 (0)20 7523 8000
Jefferies International Limited -
Joint Broker and Financial Adviser
Paul Nicholls
Max Jones +44 (0)20 7029 8000
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END
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