Downing Renewables & Infrastructure Trust targets 96MWp of solar in ₤ 200m fundraise

• Downing Renewables & Infrastructure Trust (DORE) is intending to raise ₤ 200 million through an initial public offering (IPO) to invest in a profile of renewables consisting of solar PV.

It is anticipating to secure an option to acquire a seed portfolio of as much as ₤ 50 million comprising of c. 96MWp of operational UK solar PV projects with a typical operating track record of 6 years.

Up until now it has actually secured up to ₤ 30 million of cornerstone financial investment, with Downing LLP and also Downing took care of funds meaning to spend c. ₤ 20m and also an additional ₤ 10m of dedications secured under a letter of intent from existing Downing customers.

The full portfolio of renewables is to also consist of wind, hydro and geothermal, with DORE aiming to ensure it is expanded by modern technology and also location in a proposal to raise the stability of earnings and also reduce seasonal variability. It is also seeking to expand the profile by project phase, allowing it to improve returns by investing in possessions that remain in building and construction or are construction-ready.

Tom Williams, head of power and facilities at Downing LLP, claimed the firm had actually picked to expand the profile in this way to "we lower our dependence on any one renewable resource source, any type of single territory and any one set of policies and also regulations. Diversity presents an all-natural hedge by reducing the impact of seasonal variability as well as raises the stability of earnings both throughout the year and also year-to-year".

The profile will be spread out throughout the UK, Ireland and Northern Europe, with a pipe of possessions with a worth of over ₤ 1.5 billion having actually been recognized.

The business is to target a web asset value (NAV) total return of 6.5% - 7.5% p.a. over the tool to long-term, with DORE wanting to get the London Stock Exchange's Green Economy Mark at Admission, which identifies companies that obtain 50% or even more of their total yearly incomes from product or services that contribute to the international environment-friendly economic climate.

" We have a tested performance history of purchasing core renewable resource assets as well as have supplied an unlevered weighted-average gross IRR of 9% over the past 10 years," Williams stated.

" This is currently supported by our in-house data-led asset management strategy which not only makes sure reliable real-time asset coverage but increases performance as well as enables us to optimise value over the lasting."