Downing Renewables & Infrastructure Trust PLC (LSE:DORE) said it had started exclusive discussions to sell its interest in the Gabrielsberget wind farm in Sweden.
The offer price is at a small premium to the carrying value as of 30 June 2024 with the transaction anticipated to be completed in this year’s fourth quarter with a return equal to 14% of NAV.
DORE purchased Gabrielsberget in January 2022 for a total consideration of £19.8 million, with a subsequent 50% uplift on the investment as at 30 June 2024.
Sale proceeds will be used to fund further growth and re-investment in the company's hydropower portfolio, said the statement.
Tom Williams, Downing’s Head of Energy and Infrastructure, commented: “This transaction will place the company in a favourable position to capitalise on an attractive pipeline of internal and external investment opportunities in our continuing efforts to increase quantity and quality of returns for our shareholders."