Foresight Environmental Infrastructure (LSE:FGEN) has sold its entire rooftop solar portfolio for £21.2 million.
The disposal to AtmosClear Investments includes an upfront payment of £20.5 million and a potential additional £700,000 based on post-sale conditions.
Comprising over 1,000 solar installations, its assets are dispersed across England, Scotland, and Wales, covering homes, businesses, and ground-mounted sites.
Acquired in 2015, this was FGEN’s only rooftop solar investment and is considered outside its core focus. The sale allows it to reduce debt and reallocate funds to higher-yield investments, aligning with its capital strategy.
The deal generates a 4.2% annual return on investment and a 1.3x return on capital. This is FGEN's second sale in 2024, following the divestment of anaerobic digestion assets in August. After this sale, it retains 11 solar parks, representing 13% of its portfolio’s value.
Chair Ed Warner said: "We are pleased with this sales agreement which has provided us with substantial funds from a non-core, low-yielding asset.
"Capital allocation remains a key priority for the board and proceeds will be used to strengthen our balance sheet through a further reduction in debt."