Octopus Renewables Infrastructure Trust (LSE:ORIT) has signed a conditional agreement with OnPath Energy, a UK onshore renewable energy developer, to acquire the Barnsdale Solar Park in West Yorkshire.
Barnsdale is a 55 megawatt-peak project and is currently under construction. Once operational, it is expected to generate clean electricity equivalent to the annual needs of 19,000 homes.
The total acquisition price, including remaining construction costs, will amount to £34.6 million ($65.9 million).
Octopus Renewables says the acquisition of Barnsdale is expected to contribute positively to the company’s 9–11% medium- to long-term total return target under the ORIT 2030 strategy.
Co-fund managers David Bird and Chris Gaydon say the ORIT 2030 strategy focuses on building shareholder value through disciplined capital allocation.
“Barnsdale is a good example of this approach,” the co-fund managers say.
“Once the acquisition completes, Barnsdale will add further scale to our UK solar portfolio and its contracted revenues are expected to contribute to dividend cover from FY2027 onwards.”
Octopus Renewables Infrastructure Trust is an investment firm incorporated in England and Wales that invests in a diversified portfolio of renewable energy assets in Australia and Europe.
Write to Aaliyah Rogan at Mining.com.au
Main image: Octopus Renewables
