SDCL Energy Efficiency Income Trust (SEEIT) has completed the acquisition of a portfolio of renewable energy assets from water company United Utilities. The 70 projects totalling 69MW, predominantly solar PV, were acquired for approximately £100 million funded from existing cash reserves.
The assets provide renewable energy generated on-site directly to United Utilities under long term contracts.
SEEIT meanwhile confirmed that its investment Manager and associates had been purchasing the company’s shares as the share price fell below NAV. Jonathan Maxwell, chief executive of Sustainable Development Capital LLP, said: “There are times, particularly during periods of market volatility, when market prices and value can diverge significantly, compared either to prevailing net asset values on the one hand, or to future prospects on the other. Energy efficiency has never been more valuable as a source of cost and carbon emission reductions as well as energy security. Against this market background and outlook, members of the board and individuals at the Investment Manager have taken the opportunity to acquire shares in the market”.
The company statement said that energy cost increases meant energy efficiency had become more valuable than ever. It cited a robust liquidity position, which it said was “well capitalised through a combination of cash on balance sheet and available undrawn credit facilities”. It also said its exposure to sterling was limited with “less than 20% of net assets in UK-denominated currency” and active foreign exchange management.