Octopus’ investment vehicle is dropping its options to buy into 175MW of ready-to-build solar farms in Spain, profiting by £3 million on the unbuilt projects.
The developer-generator entered in 2020 into a conditional agreement to buy rights to the sites, but has re-considered its plan.
Exiting the option now at a value above its holding value was a more attractive proposition than committing to the projects’ construction, the investment trust said today.
Octopus Renewable Investment Trust said it had recovered its initial deposit paid and negotiated a termination payment from the vendor.
The moves result in a net gain on the investment, ORIT said, of approximately £3.0m over the €2.0m initial deposit, equivalent to approximately £1.5m over the £3.2m holding valuation of the option.
ORIT chairman Phil Austin commented: “Exiting this option demonstrates ORIT’s ability to remain flexible as market conditions change and reflects our disciplined approach to capital allocation, allowing us to capitalise on opportunities to enhance value for shareholders when the right deals arise.”