An investment fund is planning a £150m initial public offering to buy a portfolio of energy efficiency projects and develop a pipeline of others. Sustainable Development Capital’s Energy Efficiency Income Trust (SEEIT) said it will invest exclusively in energy efficiency.
It hopes to raise the money to acquire nine initial projects valued at £57m and three others worth £30m. SEEIT said these should deliver returns of 7-8% per annum and plans to provide investors with an initial dividend over 5%.
The seed projects include combined heating, cooling and power plants at St Bartholomew’s Hospital in London and a Citi data centre, as well as hundreds of LED lighting projects across Santander properties and NCP carparks.
The company said it will focus on the opportunity to deliver lower cost, cleaner energy solutions to end consumers rather than chase subsidies or market-exposed energy projects.