New investment company Seeit (SDCL Energy Efficiency Income Trust) has announced plans to float, to raise £150 million to invest exclusively in the energy efficiency sector, which it describes as a “rapidly growing segment of the infrastructure market”.
The funds will be managed by Sustainable Development Capital, which claims over £500 million of capital commitments since it started investing in energy efficiency in 2012 .
The company wants to acquire a seed portfolio of 12 energy efficiency projects and contracted investment opportunities across the UK, together with a pipeline of near and medium-term investment opportunities. It already has nine projects valued at £57 million and three contracted investment commitments with identified counterparties totalling £30 million. They include CHP and cooling projects at a Citi data centre and St Bartholomew’s Hospital in London, and LED lighting projects for hundreds of Santander properties and over 100 NCP car parks.
The company said the energy efficiency market has “gained considerable traction in recent years”, citing cost efficiencies, corporate capex budget reductions, technology scale-up, carbon emission reduction targets and concerns around energy security.
Jonathan Maxwell, chief executive and founder of Sustainable Development Capital, said: “Both private and public organisations are seeking to reduce their energy consumption footprint and improve security of energy supply, mindful of economic, social and environmental costs. Capitalising on this opportunity and through SDCL’s expertise and knowledge, Seeit has already identified additional assets to add to an existing high-quality operational seed portfolio, targeting a total return of 7-8 per cent. per annum, with a growing dividend yield.”
The company plans to buy and hold projects for the long term. It will initially focus on the UK but anticipates making investments in continental Europe, North America and, potentially, the Asia Pacific region.