TRIG closes £51m sale of two Scottish onshore wind farms
The Renewables Infrastructure Group Limited (TRIG), a notable entity in the renewable energy sector listed on the London Stock Exchange and advised by InfraRed Capital Partners as Investment Manager and Renewable Energy Systems as Operations Manager, has successfully completed the sale of two onshore wind farms located in Scotland. This transaction not only signifies a notable achievement in TRIG’s operational strategy but also underscores the vitality of strategic asset management in the renewable energy landscape.
The disposal of the Forss and Little Raith wind farms for a total consideration of £51 million represents a strategic move by TRIG, fetching a 4% premium over the valuation as of December 31, 2023. This marks TRIG’s third disposal transaction at a premium to Net Asset Value (NAV) within a mere seven months, showcasing the company’s adeptness in leveraging market conditions to optimize its asset portfolio.
This recent disposal aligns with TRIG’s broader strategy to mitigate floating rate debt, following the sale of the Pallas wind farm and three other onshore wind farms in the latter half of 2023, cumulatively raising £125 million. These transactions reflect TRIG’s strategic foresight in asset management and its commitment to financial prudence by reducing its Revolving Credit Facility (RCF) borrowings from £364 million at the end of 2023 to an anticipated £150 million during 2024. Additionally, TRIG is scaling down its RCF commitment from £750 million to £600 million, further evidencing its strategic financial restructuring amidst a dynamic market landscape.
The Forss and Little Raith projects have been pivotal components of TRIG’s renewable energy portfolio since 2013 and 2019, respectively. With a combined generation capacity of approximately 32MW, these wind farms have contributed significantly to the UK’s renewable energy output, underpinning TRIG’s commitment to sustainable energy generation.
Richard Crawford, Head of Energy Income Funds at InfraRed, highlighted the strategic significance of these disposals: “TRIG has now sold six assets at an average double-digit premium to their respective valuations at the point of sale, underscoring our confidence in the Company’s portfolio valuation and the disconnect between private and public market valuations for renewables infrastructure.”
TRIG’s strategic disposition of assets at a premium underscores the inherent value within its renewable energy portfolio and the broader potential for renewable energy assets in the private market. This strategic maneuvering not only enhances TRIG’s financial flexibility but also aligns with the global shift towards sustainable energy sources, marking a pivotal moment in the financial structuring within the renewable energy sector.