2 Jan 2020 07:00
Gresham House plc
("Gresham House" or the "Company")
Sale of a 49MW grid level battery storage project
Gresham House, (AIM: GHE) the specialist alternative asset manager, is pleased to announce that it has sold its first material battery storage development project to Gresham House Energy Storage Fund plc (LSE: GRID) on 31 December 2019. The 49MW battery-only project known as Red Scar (the "Project"), which is located on the Red Scar Business Park, by the Longridge Road and the M6 outside Preston, was sold for a total enterprise value of approximately £32.8 million (inclusive of deferred and contingent consideration) and is one of the exclusive portfolio projects being developed by subsidiaries and associates of Gresham House for sale to GRID.
Gresham House, through its wholly owned subsidiary Gresham House Devco Limited and associate Noriker Power Limited, made £0.6 million equity and loan investments in the Project. This investment will make an initial net gain on sale of approximately £1.2 million (after contractual and expected payments and transaction fees), with deferred payments, conditional on performance, of approximately £0.4 million expected in twelve months' time. The investment in the Project is consistent with exceeding Gresham House's 15% return on balance sheet capital threshold over the medium term. After this sale, Gresham House has an exposure of £3.4 million in the remaining battery storage development projects, which are in exclusivity with GRID and total over 100MW in size and expect to be sold during 2020.
Tony Dalwood, Chief Executive of Gresham House, said:
"This is a good example of how Gresham House uses its balance sheet to align itself with its clients and funds that it manages or advises. We are targeting this area to generate long term shareholder value from strong and sustainable investments. However, future returns may be less certain in timing and may vary from this initial successful development."
- Ends -
For more information contact:
Gresham House plc Kevin Acton, Finance Director
| +44 (0)20 3837 6271
|
Houston - PR advisors Alexander Clelland
| gh@houston.co.uk +44 (0)20 3701 7667
|
Canaccord Genuity Limited - Nominated Adviser and Joint Broker Bobbie Hilliam Georgina McCooke
| +44 (0)20 7523 8000 |
Jefferies International Limited - Financial Adviser and Joint Broker Paul Nicholls Max Jones | +44 (0)20 7029 8000 |
About Gresham House
Gresham House plc is an AIM quoted specialist asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes timber, renewable energy, housing and infrastructure, strategic public and private equity (private assets). The group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals.
Shareholder value creation will be driven by long-term growth in earnings as a result of increasing AUM and returns from invested capital.
www.greshamhouse.com