SDLC Energy Efficiency Income Trust (SEEIT) has acquired £5m of combined heat and power assets from GET Solutions, with an additional £12m pipeline to follow.
The initial 15 CHP units, some of which are already operational, are sited at Holiday Inn and Crowne Plaza hotels, both brands of Intercontinental Hotel Group. There is a follow on pipeline of up to 51 units in the UK hotel sector.
The projects in the initial portfolio have been designed to provide the base-load energy generation to meet the operational needs of the hotels, irrespective of their levels of occupancy.
SEEIT said the contract results in predictable revenues with potential for upside. It will own the assets that provide essential services to the buildings throughout the 15-year life of the project contracts. GET Solutions is providing performance and revenue guarantees.
SEEIT also has rights to invest in a pipeline of over 100 projects with GET, involving up to £30m of investment in CHP, solar and storage projects.
“We are very pleased to have the opportunity to invest in a portfolio of well-structured building energy efficiency solutions in the UK that help to reduce greenhouse gas emissions, cut energy costs, and improve the quality of infrastructure,” said SDCL CEO, Jonathan Maxwell. “We are particularly pleased to have established a replicable energy services offering, which involves zero up-front investment for clients, with a partner such as GET Solutions and for such prominent clients.”
Maxwell added that the firm is “at advanced stages of negotiations on an exciting and substantial pipeline of new investment opportunities in the USA, Continental Europe and the UK”.
Since listing in December 2018, SEEIT has struck numerous deals for CHP, lighting and solar assets, including a PPA arrangement with Tesco for onsite solar. Last month the trust made its first foray into electric vehicle infrastructure, agreeing to fund an initial 112 rapid and ultra fast EV charging stations.