Downing Renewables and Infrastructure Trust (DORE), part of UK based investment fund Downing LLP, has taken over a 96 MW portfolio of solar PV assets, completing acquisition of a portfolio that's located in mainland Great Britain and Northern Ireland.
The £42 million transaction brings to Downing's portfolio 73 MW capacity in the form of 13 ground mounted solar projects in mainland Great Britain, 10 MW as 28 commercial rooftop solar assets, and 13 MW of 7 residential rooftop portfolios in Northern Ireland.
Operational for an average of around 6 years now, Downing expects these assets to contribute significantly to its target dividend yield going forward, with a particularly strong contribution to the yield in the calendar year to December 31, 2021.
DORE said going forward it will invest in a diversified portfolio of renewable energy generating assets and other infrastructure as solar and wind that balance higher yield and come with lower capital growth of defined life assets, and hydro that comes with lower yield and higher capital growth assets. Target markets will be the UK, Ireland and Northern Europe.
This happens to be the 2nd acquisition of London Stock Exchange listed DORE, having previously announced picking up a hydro portfolio in January 2021.
In its December 2020 IPO, DORE raised £122.5 million, out of which it says £102 million has been deployed.
"The combination of this solar portfolio, the hydro portfolio acquisition in January and the wind project under exclusivity encapsulates DORE's strategy of diversification by geography, technology, construction stage and revenue," said Head of Energy and Infrastructure at Downing LLP, Tom Williams. "Together, it provides strong, stable, diversified and high-quality earnings that will underpin DORE's dividend and NAV for years to come."
In January 2021, Downing LLP secured power purchase agreements for 2 solar farms through online renewable energy procurement platform Ziego (see Online UK RE Procurement Platform Clinches 1st Deal).