Gresham House sells battery storage project for £32.5m
(AIM: GHE ) announced that it has sold a further battery storage project to (LSE: GRID ) for around £32.5 million.
The specialist alternative asset manager said the c.50MW battery-only project, which will also come with up to £0.75m of deferred contingent consideration, is one of the exclusive portfolio projects being developed by subsidiaries and associates of Gresham for sale to GRID.
Gresham House, through its wholly owned subsidiary Gresham House Devco Limited and associate Noriker Power Ltd, made £1.7m of equity and loan investments in the Project.
This investment will return an initial net gain on sale of around £1.8m (after contractual and expected payments and transaction fees), of which £0.8m will be received in the next year.
A further net deferred payment of up to £0.3m could also be payable in up to twelve months' time. The company added that today’s investment is consistent with exceeding Gresham House's 15% return on balance sheet capital threshold over the medium term.
Shares in Gresham House have increased by over 10% since early September 2020 to open 0.19% higher this morning at 789p following the announcement.
After this sale, Gresham House has an exposure of £3.6m 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 has highlighted to investors that it continues to build and develop a pipeline of projects that are expected to be transferred to GRID in 2020 and beyond.
CEO of Gresham, Tony Dalwood, said Gresham will use its balance sheet “where appropriate to scale our long-term asset management capability in renewable infrastructure.”
He added, “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."
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