ORIT Makes Strategic Exit from Spanish Solar Purchase
- Octopus Renewables Infrastructure Trust (ORIT) demonstrates flexibility by terminating solar project option in Spain, resulting in a net gain of £3m and reflecting their disciplined approach to capital allocation.
Octopus Renewables Infrastructure Trust (ORIT) has decided to terminate its option to purchase 175MW of solar projects in Spain. The company initially entered into an agreement to acquire the sites in 2020 but reconsidered the projects based on risk and capital allocation. Exiting the option at a value higher than the company's holding value was deemed more attractive than committing to construction. ORIT has received a refund of its initial deposit and negotiated a termination payment from the vendor, resulting in a net gain of approximately £3m over the initial deposit.
Chairman Phil Austin stated that this decision showcases ORIT's flexibility in adapting to changing market conditions and reflects their disciplined approach to capital allocation. The company aims to capitalize on opportunities that arise to enhance value for shareholders.
Why did Octopus Renewables Infrastructure Trust terminate its option to purchase solar projects in Spain?
- The termination of the option to purchase solar projects in Spain by Octopus Renewables Infrastructure Trust (ORIT) was based on a reassessment of risk and capital allocation.
- ORIT decided that exiting the option at a higher value than its holding value was more attractive than committing to the construction of the projects.
- The company received a refund of its initial deposit and negotiated a termination payment from the vendor, resulting in a net gain of approximately £3m over the initial deposit.
- Chairman Phil Austin emphasized that this decision demonstrates ORIT's flexibility in adapting to changing market conditions and reflects their disciplined approach to capital allocation.
- ORIT aims to capitalize on opportunities that arise to enhance value for shareholders, indicating a strategic focus on maximizing returns and managing risk in the renewable energy sector.
